Spot Ethereum ETF S-1 Filings Not Certain to Be Approved by the SEC

Key Points:

• The SEC may approve a spot Ethereum ETF S-1 filing within weeks to three months.
• Eight Ethereum ETFs have 19b-4 approval, but S-1 form clearance is needed for trading to start.
• The commission is considering classifying staked ETH as a security, which may affect ETF launches.

Nate Geraci, president of ETF Store, has suggested that the approval of a spot Ethereum ETF S-1 filing by the U.S. Securities and Exchange Commission (SEC) could occur within the next few weeks to three months.

Spot Ethereum ETF S-1 Filing Still Under Consideration for Trading

Geraci noted that the primary delay hinges on how long the SEC chooses to extend the approval process.

Former SEC Chairman Jay Clayton also weighed in, predicting that trading of these ETFs might commence by July or August. This speculation follows the SEC’s recent approval of 19b-4 forms for eight Ethereum ETFs, including those from major financial institutions such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.

The approval is crucial for rule changes that would allow these ETFs to be listed and traded on exchanges. However, before trading can begin, the issuers must have their S-1 registration statements activated.

Regulatory Scrutiny on Staked ETH as Security Intensifies

The timeline for these ETFs’ debut on exchanges remains uncertain, as the spot Ethereum ETF S-1 filings need to be processed. Unlike the approval process for Bitcoin ETFs, which began trading immediately after receiving S-1 clearance, Ethereum ETFs may experience additional delays.

Complicating the landscape further, legal interpretations vary on whether the approval of Ethereum ETFs indicates a fundamental shift in regulatory stance.

Additionally, recent court filings by Ethereum infrastructure provider Consensys revealed that the SEC is contemplating categorizing ETH as a security following investigations into Ethereum-related firms. These legal actions suggest that staked Ether might be classified as an investment contract, thus falling under securities regulations, according to a report by Galaxy Digital Holdings.