According to Bloomberg ETF analyst Eric Balchunas, spot Ethereum exchange-traded funds (ETFs) could commence trading in the United States by July 2, marking a potential milestone for the cryptocurrency market.

In a recent update on June 15, Balchunas revised his prediction, citing a relatively smooth review process from the United States Securities and Exchange Commission (SEC). He noted that the SEC's comments on the ETF applicants' S-1 applications were minimal, expecting them back within the week.

"We are moving up our over/under date for the launch of spot Ether ETF to July 2nd," Balchunas stated in his assessment on X. He expressed optimism that the SEC might work to declare the ETFs effective shortly thereafter, aiming to clear the regulatory hurdle before the upcoming holiday weekend in the United States.

This update follows a recent shift in sentiment from earlier uncertainties. Previously, Balchunas had indicated that applicants were awaiting feedback from the SEC's Division of Corporation Finance, causing some reconsideration of his earlier prediction for a July 4 launch.

The approval process for spot Ether ETFs has seen progress since May 23, when the SEC approved eight 19b-4 filings for listing on various U.S. exchanges. These ETFs, however, cannot begin trading until they secure the necessary approvals via S-1 registration statements.

SEC Chair Gary Gensler has provided a broader timeframe, suggesting that spot Ether ETFs could potentially launch within the next three months, aligning with expectations by the end of September. This timeline hinges on how quickly issuers can address SEC comments and finalize regulatory requirements.

While anticipation among traders mirrors the excitement seen with Bitcoin ETF approvals earlier this year, not all market experts share the same level of optimism. Stephen Richardson, managing director of financial markets at Fireblocks, has highlighted the challenges in valuing Ethereum's utility and utilization rate, which could impact initial investor sentiment towards spot Ether ETFs.

As the cryptocurrency market awaits further developments, the potential launch of spot Ethereum ETFs represents a significant step towards broader adoption and integration of digital assets within traditional financial markets. Investors and enthusiasts alike are keenly watching these developments unfold, poised for potential market impacts akin to previous ETF launches in the cryptocurrency space.