Updated on June 14, 2024: Ethereum Spot ETF’s S-1 Filing to be Approved This Summer
The approval of the “19b-4 form” (Exchange Rule Change) for the Ethereum Spot ETF by the U.S. Securities and Exchange Commission (SEC) on May 23 is considered a significant milestone for Ethereum. The timing of when the crucial “S-1 registration statement” form will be approved by the SEC is now the most anticipated development in the market.
During a hearing on June 13 by the Senate Banking Committee on U.S. President Joe Biden’s 2025 budget request to the SEC, SEC Chairman Gary Gensler stated that he expects the committee to approve the asset management company’s S-1 registration statement “at some point this summer.”
However, despite the “semi-approval” of the Ethereum Spot ETF, Gensler remains firm in his uncertain stance on whether Ethereum should be classified as a commodity and has not provided a clear answer.
The SEC stated that after approving the “19b-4 form,” it will still take some time before the final approval of the Ethereum Spot ETF. Eric Balchunas, an ETF analyst at Bloomberg, stated that it is possible for Ethereum products to be launched on U.S. exchanges in June, but a conservative estimate is that the SEC will receive final approval before July 4.
“July is a complete guess both in past and present,” said ETF analyst James Seyffart on X. “But I am more confident in saying that the Ethereum ETF will be launched at some point this summer, which is somewhat expected.”
Updated on May 30, 2024: BlackRock Submits S-1 Form
The U.S. Securities and Exchange Commission (SEC) approved the “19b-4 form” (Exchange Rule Change) for the Ethereum Spot ETF on May 23, which is considered a significant milestone for Ethereum. Recently, financial giant BlackRock updated its S-1 form with the SEC, signaling positive signs for the Ethereum Spot ETF application.
James Seyffart, an ETF analyst at Bloomberg, stated that BlackRock’s move to update the S-1 form represents that “the issuer and the SEC are working hard to launch the Ethereum Spot ETF.”
Eric Balchunas, an analyst at Bloomberg, also tweeted, “This is a good sign!” and believes it is reasonable to expect the launch of the Ethereum ETF by the end of June, but he personally conservatively estimates that the Ethereum ETF will officially launch on July 4.
Original article published on May 28, 2024:
What Happens After the Approval of Ethereum Spot ETF?
The U.S. Securities and Exchange Commission (SEC) approved the “19b-4 form” (Exchange Rule Change) for the Ethereum Spot ETF on May 23. The applicants include financial giants BlackRock, Fidelity, Grayscale, among others, and the ETF’s official listing is now just one step away.
This not only enhances the normalization of cryptocurrencies but may also have a profound impact on the entire financial market.
Currently, most issuers of Ethereum Spot ETFs have received approval for the “19b-4 form,” but the issuers still need the SEC’s signature and completion of the “S-1 registration statement” for the spot Ethereum ETF to officially begin trading. The changes that the approval of the Ethereum ETF will bring to the market are the most important concern for the market and the community.
Read more: [The Second Major Milestone in the Crypto Market this Year: SEC’s “Semi-Approval” of Ethereum Spot ETF, What Does It Represent?][1]
Eric Balchunas, an analyst at Bloomberg, believes that the Ethereum Spot ETF will exhibit market behavior similar to that of a Bitcoin Spot ETF, but the trading volume may be smaller. Balchunas describes this as a “horse race” and predicts that the initial assets under management of the ETF could reach approximately $1 billion.
Meanwhile, Matthew Sigel, Director of Digital Asset Research at VanEck, states that they are working to create a “very strong investment case” for Ethereum. He emphasizes that compared to Bitcoin, Ethereum has inherent technological advantages, especially its rich decentralized application (DApp) ecosystem, which is an attractive point that should not be ignored by technology and stock investors.
With Hong Kong and other countries beginning to approve Bitcoin and Ethereum Spot ETFs, the U.S.’s move may spark exploration of similar products in other jurisdictions. Yat Siu, Co-founder of Animoca Brands, mentioned that with the progress in the U.S., it can be foreseen that countries such as the UK, Singapore, Japan, and the Middle East may also start considering launching their own spot ETFs. He states that the U.S. does not want to fall behind other countries in the field of cryptocurrencies and Web3, which may further drive innovation and development in this area.
Next Steps for Ethereum’s Development?
After the approval of the Ethereum ETF, it may take weeks to months before it can be officially listed and open for trading. According to The Block, traders expect the expected inflow after the listing to be around 15-30% of what the Bitcoin ETF experienced.
According to The Block’s data, the Ether price skyrocketed after the ETF’s approval, surging past $3,963 and settling at $3,855, a rise of about 4.7% in the past week.
The future price trend and development of Ethereum may also be influenced by the upcoming U.S. presidential election.
