Ethereum ETF S-1 Expected To Be Approved By July 2

Key Points:

• Bloomberg analyst Eric Balchunas suggests the launch date for the spot Ethereum ETF may be moved up to July 2, with the SEC’s feedback indicating imminent approval.
• The SEC’s comments on the Ethereum ETF S-1 forms are brief, suggesting the review process is nearly complete, and approval could come before the Independence Day holiday.

Bloomberg ETF analyst Eric Balchunas has suggested that the launch date for the spot Ethereum ETF might be moved forward to July 2.

Ethereum ETF S-1 Shows Signs of Approval Nearing

The Securities and Exchange Commission (SEC) staff sent comments regarding the Ethereum ETF S-1 forms to the issuers, requiring responses within a week. Balchunas noted that the SEC’s feedback was brief and likely indicative of an impending approval, possibly before the Independence Day holiday.

Typically, a swift response request from the SEC signals that the review process is nearing completion. According to Balchunas, there is a decent chance the SEC will declare the ETFs effective next week. This is much sooner than SEC Chair Gary Gensler’s recent prediction that Spot Ether ETFs might be fully approved by September.

Institutional Capital Expected to Flood Ethereum ETFs

The first round of Spot Ethereum ETF approvals occurred at the end of May 2024, surprising the digital asset market. Despite the success of a Spot Bitcoin ETF following its January approval, the SEC had long resisted approving crypto-based exchange-traded products. The SEC has approved form 19b-4 for spot Ethereum ETF proposals from eight issuers, including BlackRock, Fidelity, and VanEck. However, the Ethereum ETF S-1 form must also be approved before the ETFs can officially begin trading.

With the Ethereum ETF 19b-4 forms already approved, issuers are now waiting for the Ethereum ETF S-1 form approvals. These forms are essential for offering new securities publicly. Given the recent developments and the SEC’s quick turnaround in May, the July 2nd launch date is a realistic possibility.

Standard Chartered’s Geoff Kendrick estimates that the launch of spot Ethereum ETFs could attract significant institutional capital, with potential inflows between $15 and $45 billion in the first year.