Ethereum ETF issuers pour in updated S-1s as long-term holder accumulation could fuel ETH rally
|- Prospective spot Ethereum ETF issuers has filed their amended S-1 drafts with the SEC.
- Ethereum could see mass adoption if pitched to traditional investors as disruptor to Big Tech.
- Ethereum bullish view still in play as long-term holders continue accumulation.
Ethereum is down by 1% on Friday as prospective spot ETH ETF issuers began pouring in their updated S-1 filings after the Securities & Exchange Commission (SEC) commented on them last week. Meanwhile, ETH long-term holders have continued accumulating the number one altcoin amid potential ETH tailwinds in the year's second half.
Daily digest market movers: Amended Ethereum ETF S-1s, ETH tailwinds
Ethereum ETF issuers submitted their amended S-1 registration statements with the SEC on Friday after the agency gave "light" comments on them last week.
The total filings are from VanEck (0.20% fee), Fidelity (seed investment of $4.7 million), BlackRock ($10 million seed investment), Franklin Templeton (0.19% fee), Grayscale, Invesco and 21Shares. This comes after Bitwise filed its S-1 draft and launched an Ethereum ad earlier in the week.
While BlackRock has yet to disclose its fees for the spot Ethereum ETF, Bloomberg analyst Eric Balchunas noted that what it will charge is the most important missing variable outside of the exact launch date. "Their fee is the sun that the rest will need to orbit around. Must be nice," he said.
Also read: Ethereum ETF issuers launch marketing campaign with slight dig at TradFi
According to Balchunas, after issuers filed their amended S-1s today, the SEC will "let issuers know about any final changes and effectiveness (aka final approval)." He maintained his predictions with July 2 as over/under for the ETFs to launch.
Balchunas also suggested that a narrative that would help explain Ethereum to non-crypto natives is pitching it as a "decentralized internet for decentralized applications." He mentioned that most people aren't comfortable with Big Tech's control, and framing Ethereum as the solution will help onboard traditional investors. "This is an easy, wide net way to frame it to outsiders," said Balchunas.
According to a Bloomberg report, Standard Chartered is planning to open a spot trading desk in London for Ethereum and Bitcoin. This would make the company one of the first global banks to allow spot ETH trading. The crypto spot trading desk will operate as part of Standard's FX trading unit.
Read more: Ethereum ETFs may not cause upward surge in ETH price as many expect
Bitwise Chief Investment Officer Matt Hougan predicts that the second half of the year will provide several ETH tailwinds, including:
- Significant New Demand: Pending ETF approval
- Constrained Supply: Limited-to-zero net issuance
- Improved Regulatory Clarity: Based on ETF approval or the SEC dropping its Consensys lawsuit
- Radically Improved Throughput: The market is yet to realize the importance of the Dencun upgrade or the real rise of Layer 2s
- Significantly Improved UX: Base
- Institutional Adoption: Firms like BlackRock embracing public blockchains will build first on Ethereum
And several others.
ETH technical analysis: Ethereum's bullish view still in play following accumulation
Ethereum is trading around $3,480 on Friday as the top altcoin has seen over $30.9 million in liquidations. ETH's long liquidations are at $24.6 million, while short liquidations are at $6.23 million.
During bull markets, long-term holders (LTH) usually begin to sell portions of the holdings they purchased over time.
According to data from IntoTheBlock, BTC LTH began selling in January as Bitcoin's price rose to new highs, while ETH LTH continued accumulating. Some possible reasons are the imminent launch of spot ETH ETFs, which could cause a price boost, increased yields through ETH staking and restaking protocols, and ETH not yet reaching a new all-time high.
ETH/USDT 4-hour chart
As a result, ETH there's a high chance that ETH could rally in the coming weeks. A move above the $3,900 resistance will give credence to the bullish view and may see ETH rallying to set a new all-time high above $4,878.
However, a breach of the $3,300 level would invalidate the bullish thesis.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
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