Ethereum (ETH) ETF Issuers Face Crucial SEC Deadline for Draft S-1 Submissions Today

• The SEC has recently instructed prospective issuers to submit amended S-1 forms by Friday, May 31st.
• This directive follows the approval of the 19b-4 forms on May 23, marking a significant milestone in the process.
• VanEck and BlackRock have already submitted their amended S-1 forms, with BlackRock detailing a $10 million seed investment for its ETF.

Stay updated on the latest developments in the crypto world with our in-depth coverage of the SEC’s progress on Ethereum ETFs.

Spot Ethereum ETF Approval Progresses

The recent approval of the 19b-4 forms marked a significant milestone, achieved through a last-minute change in direction from the SEC. Consequently, issuers had not prepared their S-1 forms in advance. Despite this, progress is being made, with the SEC now actively engaging with issuers to finalize these forms.

Sources familiar with the situation have reportedly confirmed that the SEC requested draft S-1 filings by today, Friday. Following this submission, the agency will provide its first round of comments, leading to further amendments. Launching an Ethereum ETF necessitates SEC approval of the 19b-4 and S-1 forms, which typically undergo several revisions before final approval.

So far, VanEck submitted an amended S-1 form on the day the ETFs were approved. BlackRock followed suit on May 30, detailing a $10 million seed investment for its ETF.

Mixed Sentiment Over Delays

Eric Balchunas previously pointed out that finalizing the S-1 registration statements could take additional time, potentially delaying the launch of spot Ether ETFs. “I don’t know how fast the fast track is, but it’s going to be probably a mad scramble for the next couple of days, maybe even weeks—depends on the S-1,” he noted.

Despite potential delays, JPMorgan analysts maintain optimism, anticipating the spot Ether ETF trading will commence well before November. They perceive the ETF approval and broader crypto landscape as increasingly political leading up to the 2024 U.S. presidential election.

JPM: “The issuers’ registration statements remain under review by the SEC. As such, there is no anticipated date on when these ETFs will begin trading.
We note Galaxy analysts anticipate that S-1s will be finalized and trading may start in July or August 2024. We note this…”

— matthew sigel, recovering CFA (@matthew_sigel) May 24, 2024

Split Capital co-founder Zaheer Ebtikar noted that the unexpected approval caught many off guard, and an immediate launch would have caused more volatile price action. He noted that the delay allows traders to anticipate and prepare for potential inflows.

GSR Research Analyst Brian Rudick added that the delay, while not highly impactful, is a marginal positive that could attract early inflows and benefit ETH’s price.

Conclusion

The SEC’s recent directives and approvals mark significant progress towards the launch of spot Ethereum ETFs. While delays are anticipated, the overall sentiment remains optimistic, with analysts predicting trading to commence before November. This development is expected to have a notable impact on the broader crypto market, especially as political factors come into play ahead of the 2024 U.S. presidential election.