eight spot Ethereum ETH
+1.30%
The ETF was approved in an omnibus order earlier today. However, it may take some time before it goes live.
The SEC has approved Form 19b-4 for an Ethereum ETF that includes products from BlackRock, Fidelity, and Grayscale. However, for these products to begin trading, the S-1 registration statement must be valid.
When the Bitcoin ETF was approved, Form S-1 was prepared prior to 19b-4 approval. This made the S-1 form effective very quickly and trading began the next day.
What’s different about the Ethereum ETF is that the SEC didn’t work with the issuer until earlier this week. Experts have speculated that this may have been a political decision behind the last-minute change of heart. Issuers have now been able to expedite Form 19b-4s ahead of today’s VanEck ETF deadline, but there hasn’t been much communication regarding Form S-1.
Sources close to the process say there is still much more work to be done on the S-1 form. They said it could take several weeks to resolve the issue, but that will ultimately depend on how responsive the SEC is. Therefore, the exchange and issuer said they have not even begun discussions about launching the product.
This is consistent with estimates from industry experts. Eric Balchunas, a Bloomberg ETF analyst, told The Block in his recent interview ahead of 19b-4 approval. Note — Varies by S-1.”
Galaxy Digital predicts that the spot Ethereum ETF will be listed on exchanges in July or August. Spot Ethereum ETFs have a “significantly” higher risk profile than spot Bitcoin ETFs, which could delay regulators’ decision-making on the funds, Galaxy Digital said in a report.
Under today’s order, the SEC will likely provide issuers with feedback on their Form S-1s and work with them to prepare Forms S-1s. Once this is done and the exchange is ready, trading can begin.
As a result, the Ethereum ETF has been approved, but trading may not begin for several weeks. It may be longer or shorter depending on the urgency of the institution.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.