Ethereum saw a significant sell-off last week; the price dropped below $2,900. With total losses over the past several weeks of $119 million, Ethereum has seen a notable capital outflow the biggest since August 2022 according to a recent CoinShares analysis.
A week ago, Ethereum’s price fell from a high of $3,887 to a low of $3,232, signifying a 16.9% loss. This follows a trend. Although ETH’s price might be flat, a rise in staking shows that current users think ETH has long-term potential.
Bloomberg claims several candidates should send their revised S-1 forms before July 8. This would suggest that the launch could happen the following week, while the final approval of S-1 forms will likely happen by July 12. By mid-July, asset managers hope the SEC will approve the first U.S. ETFs directly investing in Ether. Earlier market speculation indicated approval might fall around the July 4 holiday week.
However, the SEC has advised Ether exchange-traded fund applicants that they have until July 8 to turn in revised documentation. After this date, there can be still another filing round. Some analysts, including Eric Balchunas, note that the SEC stopped unnecessarily.
Ethereum ETFs SEC Feedback And Approval Timeline
The SEC’s comments to issuers comprised minor questions now being answered. The SEC accepted an exchanges’ proposal to list these items in May, but separate clearance is required before they can go on sale. Although the head of asset management for Galaxy Digital thinks spot Ether ETFs will be permitted in “weeks” instead of “days,” she says the decision will eventually come in July.
Before its July 8 deadline, asset manager Bitwise has submitted a revised S-1 form for an Ethereum exchange-traded fund, suggesting almost ready products. Other companies awaiting clearance papers include BlackRock Inc., Fidelity Investments, 21Shares, and Invesco.
Before trading can start, many issuers still have to reveal their funds’ fees.
With Bitcoin showing notable increases supported by over $14 billion in flows to its spot ETFs in 2024, Ether has underperformed relative to Bitcoin for over a year.
For Ether’s price action, the expected July 8 ETH ETF debut could be a “golden egg.” However, research by K33 analysts indicates that Bitcoin is expected to experience sell pressure as $8.5 billion worth of returns to creditors of the failed exchange Mt. Gox begins this week.
A good indicator of the overall trend, the 100 EMA might cause a significant sell-off should a breach below it. Ether has to recover the $3,360 support level by July 8, having lately recovered the important $3,000 barrier. Should it fail, the transient surge could stop.
