Ethereum
Ethereum ETF Issuers Must Submit Draft Forms S-1 Today
According to sources familiar with the matter, the SEC has asked potential issuers to submit amended S-1 forms by Friday, May 31.
This follows the approval of Forms 19b-4 on May 23, marking a significant milestone in the process.
Spot Ethereum ETF Approval Progress
The recent approval Forms 19b-4 marked an important milestone, achieved thanks to a last-minute change in direction by the SEC. As a result, the issuers had not prepared their S-1 forms in advance. Despite this, progress is being made, with the SEC now actively engaging with issuers to finalize these forms.
Sources close to the situation reportedly confirmed that the SEC had requested the proposed S-1 filing by today, Friday. Following this submission, the agency will provide its first round of comments, leading to further modifications. Launching an Ethereum ETF requires SEC approval of Forms 19b-4 and S-1, which typically undergo several revisions before final approval.
So far, VanEck has submitted an amended Form S-1 on the day the ETFs were approved. black rock follow up suit on May 30, detailing a $10 million seed investment for its ETF.
Although the details of startup investments are relatively straightforward, other aspects of the forms may require more time. Forms S-1s are expected to go through at least two more rounds of draft filings before being finalized.
Mixed feeling about delays
Eric Balchunas previously highlighted that finalizing S-1 registration statements could take additional time, which could delay the launch of spot Ether ETFs. “I don’t know how fast the fast lane is, but it’s probably going to be a wild ride over the next few days, maybe even weeks, it depends on S-1,” he noted.
Despite potential delays, JPMorgan analysts remain optimistic, predicting that spot trading of Ether ETFs will begin well before November. They view the approval of ETFs and the broader crypto landscape as increasingly political as the 2024 US presidential election approaches.
Split Capital co-founder Zaheer Ebtikar noted that the unexpected approval caught many off guard and that an immediate launch would have caused more volatile price action. He noted that the delay allows traders to anticipate and prepare for potential entries.
Brian Rudick, research analyst at GSR, added that the delay, while not very impactful, is a marginal benefit that could attract early entries and benefit the ETH price.