Bloomberg specialist: Ethereum ETF launches in June

The big BlackRock delivered yesterday the crucial S-1 form for its Ethereum ETF with the US Securities and Exchange Commission (SEC). That revealed more information about the fund and one investor who already put $10 million into the fund. Bloomberg specialist Eric Balchunas calls BlackRock’s new S-1 document a “good sign” and claims a launch before the end of June is “a legitimate possibility.”

Is it now time for the Ethereum ETF?

Last week, the SEC approved all applications for Ethereum ETFs. The only thing missing was the approval of the applicants’ S-1 documents. Now BlackRock’s has arrived and that means the party can start soon.

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For BlackRock, the launch of the Spot Bitcoin ETF was a huge success. This week, the fund even overtook that of Grayscale and can officially call itself the largest Bitcoin ETF in the world.

Grayscale had built up a lead before the launch, as their Grayscale Bitcoin Trust (GBTC) had been on the market since 2013. Not in the form of an ETF, but that changed in January.

However, GBTC has been empty since its transformation into an ETF, because they charge a much higher management fee than the competition (1.5% versus 0.2%). Now it is almost time for the Ethereum ETFs and we will soon see what effect this has on the price.

Financial market under pressure

However, prices on the financial market are currently under considerable pressure. Bitcoin and the rest of the crypto market are unable to break out to all-time highs again and set a new price record.

This week there is no apparent macroeconomic data to cause problems, other than the US government’s government bond auctions. These were disappointing, causing market interest rates to skyrocket.

Higher interest rates are usually bad news for the financial markets and we saw this reflected in the prices of risk assets. Bitcoin and the rest of the crypto market in particular had a hard time. In that respect, we can only hope that next Friday’s inflation data from America paints a better picture.

Lower inflation could trigger quick(er) interest rate cuts from the US central bank and that is bullish for Bitcoin.

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