The imminent launch of the first spot Ether exchange-traded funds (ETFs) has opened the floodgates for more crypto exchange-traded products, including a potential Solana-based ETF.
The first batch of spot Ether (ETH) ETFs will pave the way for more crypto ETFs, according to Eric Balchunas, a senior ETF analyst at Bloomberg.
The analyst expects more products based on Ether and SOL (SOL), he wrote in a July 15 X post:
“Keep in mind after launch there are flows and then add’l ETH products I’m sure, then Solana, and then.. it’s probably never going to end. The dam has broken.”
Balchunas is considered by many as one of the most trusted ETF analysts for both legacy and digital asset-based ETFs.
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First spot Ether ETFs could start trading on July 23
The first spot US Ether ETFs could start trading as soon as July 23, following the United States Securities and Exchange Commission reportedly delivering final instructions to asset managers.
According to Balchunas, the commission instructed issuers to submit their final S-1 filings by July 16, targeting a launch for the new funds on July 23. The final filings must include the fees issuers plan to charge in their new crypto funds.
On May 23, the agency approved issuers’ 19-b Form proposing rule changes that would allow the crypto-based investment vehicles. Asset managers now need approval for their initial securities registration S-1 Forms.
The upcoming Ether ETFs could contribute to ETH’s price appreciation, which has been in an over-one-month downtrend since the end of May.
Ether price reversed from its month-long downtrend on July 8, after forming a local bottom just above the $2,800 mark, according to CoinMarketCap data.
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Combined crypto ETFs are “100%” on the way — Balchunas
Following the launch of the first ETH ETFs, ETFs with exposure to multiple cryptocurrencies could debut next.
This is a “100%” possibility, wrote Balchunas, after being asked about the likelihood of asset managers filing for ETFs with mixed Bitcoin and Ether exposure:
“100%. They’re gonna go full Frankenstein.”
As for the Ether-based ETFs, analysts predict that they could garner significant interest from investors, attracting up to $10 billion in new inflows in the months following the launch.
Magazine: Ether ETFs on the move, Messi promotes memecoin, and more: Hodler’s Digest, July 7-13