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The crypto industrys hopes that spot Ethereum exchange-traded funds will launch as early as this week are fading.

Industry watchers are not so certain that the Securities and Exchange Commission will green light the batch of applications this week.

Were gonna have to push back our over/under till after the holiday, Eric Balchunas, a Bloomberg Intelligence analyst, said on X.

He previously said that he expected the market watchdog to give a thumbs up before July 4.

Balchunas changed his mind after hed heard that the regulator had asked prospective issuers to amend their applications. He now says the week of July 8 is more likely.

Balchunas said he expected little movement among regulators this week ahead of Independence Day.

This is a minor setback for an industry hoping the launch of spot Ethereum ETFs would catapult the stagnant market, similarly to how spot Bitcoin ETFs did at the start of the year.

Ethereum exchange-traded products will attract $15 billion in net flows in their first 18 months on the market, Bitwises Matt Hougan recently said.

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On crypto betting site Polymarket, punters put the odds of a spot Ethereum ETF to start trading by July 4 at 4%, down from 77% last week.

The SEC asked prospective issuers to address some comments in their applications and resend applications by July 8, an applicant insider told The Block on June 29.

The source noted to the news site that they expect more rounds of back and forth between applicants and the SEC.

Despite the setback, Ethereum surged 3% over the weekend and is trading at $3,450.

Eric Johansson is DL News News Editor. Got a tip? Email him at eric@dlnews.com.

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When will Ethereum ETFs launch? Experts just moved their July 4 target - DLNews