Many cryptocurrency enthusiasts expected spot Ethereum ETF trading to follow immediately upon launch, just like the Bitcoin ETF.
Digital currency investors in the United States may not have to wait long for the newly approved spot Ethereum ETF product to start trading. The broader cryptocurrency industry has been talking about a possible S-1 approval for these products, with many experts weighing in on the matter and predicting a potential timeline for approval by the Securities and Exchange Commission (SEC).
Spot Ethereum ETF launch expected on July 4th
ETF Prime podcast host Nate Geraci speculated that approval could come in the coming weeks. While he expressed uncertainty about the exact date of the SEC decision, he limited S-1 approvals to a maximum of two to three months.
Recalling how quickly the transaction was initiated in the Bitcoin ETF case, Geraci strongly believes that securities regulators are likely to move quickly on the Ethereum ETF transaction as well.
In his opinion, the US SEC has already done much of the work approving spot Bitcoin ETFs and Ethereum futures ETFs. So he speculated that the question may be how long the SEC will pursue this matter. Eric Balchunas, senior ETF analyst at Bloomberg, suggested around July 4, 2024, as a potential timeline for approval of the spot Ethereum ETF S-1.
“The Fourth of July feels like a good over/under.” Balchunas added. Geraci agreed to this potential date. “great… I will take charge of it. But a reasonable period IMO.”
While not as rapid as a Bitcoin ETF, if approval comes within the speculated date, it would still be considered early, especially due to the unclear security status of the underlying cryptocurrency and other regulatory implications.
Correcting misunderstandings about the launch of ETH ETF
Many cryptocurrency enthusiasts expected spot Ethereum ETF trading to follow immediately upon launch, just like the Bitcoin ETF. However, Bloomberg ETF analyst James Seyffart explained the difference between SEC approval and the actual launch of an ETF. He highlighted the misconception that approval of Form 19b-4 and S-1 would occur simultaneously.
“We also need S-1 approval,” he said, following the approval of eight spot Ethereum ETFs on May 23. “It may take weeks or months to receive S-1 approval and produce an actual Eth ETF.”
Seyffart elaborated on this fact based on general ETF approval trends, emphasizing the minimum time interval before a physical product launch.
Final approval and release are often the result of two-way communication between the SEC and the applicant. Fortunately for the spot Ethereum ETF, this communication process began last week, sparking hopes for a positive outcome at the earliest. What’s notable is that the cryptocurrency ecosystem remains excited about how much discussion has been taking place on the topic of the Ethereum ETF.
Geraci and Balchunas’ optimism highlights broader cryptocurrency industry sentiment about high demand for their products.
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