As requested by the U.S. Securities and Exchange Commission (SEC), several asset managers have filed updated S-1 registration statements for Spot Ethereum ETFs, taking a step closer to potential approval.
SEC Request for Amended S-1 Filings
Several applicants for Spot Ethereum ETFs have updated their S-1 registration statements with the SEC. This move represents the final step before the launch of their ETF products. The SEC’s request for new filings aims to expedite the review process.
On Monday, asset managers including VanEck, Grayscale, Fidelity, BlackRock, 21Shares, Franklin Templeton, and Bitwise submitted their amended S-1 statements. This submission followed the SEC’s July 8 deadline, reflecting compliance and readiness among the issuers.
Understanding Spot Ethereum ETFs
Spot Ethereum ETFs are investment funds that hold Ethereum and trade on exchanges like traditional stocks or commodities. The SEC approved the Spot ETH ETF 19b-4 applications from issuers on May 23, but it must continue to give the green light to the S-1 filings before trading can begin. The SEC now needs to review the amended forms and announce any final adjustments required before granting final approval.
Anticipation of Approval
Experts suggest that the SEC’s request for updated filings increases the likelihood of approval for Spot Ethereum ETF applications. The current situation is reminiscent of the Spot Bitcoin ETF approval process in January 2024, raising expectations for a positive outcome.
Top analysts predict that the SEC will approve the updated drafts within two weeks, as issuers have completed most of the preparatory work.
Bloomberg analyst Eric Balchunas commented:
As requested by the U.S. Securities and Exchange Commission (SEC), several asset managers have filed updated S-1 registration statements for Spot Ethereum ETFs, making a move towards potential approval.
The first S-1 just came in today from VanEck… they already had their fee, so nothing to see here, really. They just threw the ball back into the SEC’s court. Expecting the rest today except for Bitwise, who did theirs last week.”
Market Impact and Outlook
Ethereum users are optimistic about the potential market impact of Spot ETF listings, anticipating significant institutional inflows. Drawing parallels with Bitcoin ETFs, ETH holders expect price increases that could offset previous losses. Currently, Ethereum trades at $2,983, down 20% from the 19b-4 application approvals.
If Ethereum follows a pattern similar to its past performance, it may experience a brief consolidation period followed by a sharp price rise once Spot ETH ETF trading begins. This pattern was observed between April 12 and May 21, when Ethereum initially dropped before stabilizing and then rising after the SEC approved the 19b-4 filings.
Therefore, the updated S-1 statements mark a critical step towards potential approval for these Spot ETH ETFs. Expectations are high, with experts predicting a positive outcome that could significantly impact the Ethereum market.
Disclaimer: This article is provided for informational purposes only. It is neither offered nor intended to be used as legal, tax, investment, financial, or other advice.
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