Ethereum
Ethereum ETFs Could Go Live in July, Analyst Says
Bloomberg analyst Eric Balchunas expects the Ether spot (ETH) Exchange-traded funds (ETFs) will begin trading in the United States in July.
Balchunas has updated its forecast for the official launch of spot Ether ETFs, moving the over/under date to July 2.
The crypto expert noted that staff at the U.S. Securities and Exchange Commission (SEC) sent comments on the S-1 filings to issuers, describing them as “fairly light” with no major issues.
He mentioned that the SEC had requested responses within a week, suggesting a good chance that ETFs could be declared effective the following week, potentially before the “holiday weekend.”
Balchunas stressed that while anything is possible, this is their best guess at the moment.
UPDATE: We are moving our plus/minus date for the spot Ether ETF launch to July 2, after hearing from staff sending feedback to issuers on the S-1s today, and they are quite light, nothing major, requiring them to be recovered within a reasonable time. week. Good chance they’ll work to declare them effective next… https://t.co/XJZ8JLwEFF
– Eric Balchunas (@EricBalchunas) June 14, 2024
On June 13, SEC Chairman Gary Gensler provided some clarification on ETH ETFs during his testimony before Senator Bill Hagerty.
Gensler noted that it expects S-1 filings for Ethereum spot ETFs to be approved by the end of summer. This statement reinforced the belief that while there may be delays, approval will likely come within the next few months.
Balchunas too mentioned that the issuers of the Ethereum spot ETFs were awaiting comments from the SEC’s Division of Corporation Finance (Corp Fin) on their S-1 filings, which they had submitted two weeks earlier.
He explained that the delay was attributed to Corp Fin reviewing these documents for the first time, noting that this unexpected situation was the result of a likely last-minute policy change within the SEC, which also surprised Corp Fin.
Balchunas further pointed out that there is uncertainty about how quickly Corp Fin could prioritize and process deposits.
However, some observers believe that Ethereum ETFs may not attract as much attention as Bitcoin (BTC) ETFs because they do not offer staking capabilities.
SEC Commissioner Hester Peirce, known for her liberal stance on cryptocurrencies and nicknamed “Crypto Mom,” has Express skepticism about the SEC’s treatment of Ethereum. Peirce pointed out that historically the SEC has classified Ethereum as a security, unlike Bitcoin, which is classified as a commodity.
The SEC has argued that Ether is a security, which introduces a distinct set of challenges from the Bitcoin ETF approval process,” Peirce noted.
The Ethereum ETF journey so far
The United States Securities and Exchange Commission (SEC) has started the approval process for Ethereum exchange-traded funds (ETFs), marking a notable step forward for the cryptocurrency industry.
On May 23, the SEC approved eight filings 19b-4. However, trading in these ETFs cannot begin until they obtain the required approvals for their S-1 registration statements.
Forms 19b-4 are regulatory filings that propose changes to existing rules or regulations, facilitating the listing and trading of new securities. Approval of these forms signifies SEC authorization for exchanges to list the ETFs, although it does not guarantee immediate commencement of ETF trading.
This progress represents a significant step forward in the Ethereum ETF approval process, which the cryptocurrency community eagerly awaits.
At the same time, the SEC is reviewing S-1 registration statements filed by Ethereum ETF issuers. These statements offer comprehensive details about the companies and the specific securities they plan to offer.
At the time of writing, the price of Ethereum (ETH) is hovering around $3,562.97, representing a 2.5% increase in the last 24 hours. However, according to data from CoinGecko, the world’s second-largest cryptocurrency is still down 3.5% in the weekly period.