- The crypto community is eagerly anticipating the launch of Spot Ethereum ETFs following the approval of 19b-4 filings for eight such ETFs.
- Experts suggest that the S-1 approval for these ETFs could be delayed by several weeks due to regulatory processes.
- Notable figures like Nate Geraci and Eric Balchunas have weighed in on the potential timeline for approval.
Explore the latest developments and expert opinions on the anticipated launch of Spot Ethereum ETFs. Discover the potential timeline and regulatory hurdles that may impact their approval.
Spot Ethereum ETF S-1 Approval Potential Timeline
The potential S-1 approval of Spot Ethereum ETFs has become a hot topic within the crypto community. Various industry experts have shared their insights on when the U.S. Securities and Exchange Commission (SEC) might give the green light. Nate Geraci, host of the ETF Prime podcast, recently expressed that the S-1 approvals could come within a few weeks.
In a post on X, Geraci stated, “When will SEC approve spot eth ETF registration statements? *Nobody* knows for sure, but my expectation would be next few weeks. 2-3 months max.” Moreover, Geraci believes that the approval process for Spot Ethereum ETFs could be expedited owing to swift ETF approval for Bitcoin previously.
In addition, he argued that the SEC has already done much of the “heavy lifting” with the approval of Spot Bitcoin ETFs and Ethereum futures ETFs. Therefore, he suggests, it may just be “a matter of how long SEC wants to string this out.”
Eric Balchunas, a senior ETF analyst at Bloomberg, engaged with Geraci’s post. He proposed a potential Ether ETF S-1 approval timeline around July 4, 2024. Balchunas stated, “July 4th feels like a good over/under.” Geraci concurred, adding, “I like it… I’ll take under, but right timeframe IMO.”
Hence, it can be rightly said that the S-1 approvals could take more than a month for approval. Though the greenlight wouldn’t be as swift as in the case of Bitcoin ETFs, it’s still quite early considering the debate around Ethereum’s status and other regulatory implications. Thus, there are very low chances of the commencement of Spot Ethereum ETF trading in the coming month.
Reason For Delay In Launch
The above-mentioned exchange follows Bloomberg analyst James Seyffart’s detailed exposition on the approval process. Earlier, Seyffart emphasized the difference between SEC approval and the actual ETF launch. The 19b-4 filings for eight Spot Ethereum ETFs were approved on May 23.
However, the analyst noted that the next critical step involves the approval of the S-1 forms, which might take longer. He explained, “We also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus a live Eth ETF.”
Seyffart highlighted the misconception that approval of the 19b-4 and S-1 forms would happen simultaneously, as it did with the Spot Bitcoin ETF approval. Moreover, he clarified that the SEC’s approval of these forms typically involves a minimum time gap before the actual launch of the products.
This process requires bi-directional communication between the regulator and the applicants, a dynamic that only started this week. In the case of Spot Bitcoin ETF approval, this interaction spanned several weeks. Given this context, the timeline for the approval and subsequent launch of Spot Ethereum ETFs remains uncertain.
However, the optimism shared by experts like Geraci and Balchunas suggests that the financial community could see significant progress in the coming months. As Geraci noted, the SEC has already navigated the complexities of similar ETF approvals, which might streamline the current process for Ethereum.
Conclusion
In summary, while the approval of Spot Ethereum ETFs appears to be on the horizon, several regulatory hurdles remain. Experts anticipate that the S-1 approval process could take weeks to months, delaying the launch of these ETFs. Nonetheless, the groundwork laid by previous ETF approvals could expedite the process, offering a glimmer of hope for the crypto community. Investors should stay informed and be prepared for potential delays, but also remain optimistic about the eventual approval and launch of these investment products.
