Bloomberg analyst Eric Balchunas has pushed back the planned launch date for Ethereum Spot ETFs in the United States. The move follows comments from the U.S. Securities and Exchange Commission on the second round of S-1 filings.
S-1 Forms Receive Late Response From SEC – Details
In May, the SEC abruptly approved 19b-4 filings from eight potential issuers of the Ethereum spot ETF, opening the first step for the possible introduction of these investment funds. Under U.S. regulations, the Commission would also have to greenlight the S-1 forms of these proposed ETFs before trading can begin. As a reminder, S-1 forms contain information about an ETF’s investment objectives, strategies, risks, fees, and more.
After the initial submission of all draft S-1 forms on May 31, the SEC responded quickly with comments described as “fairly mild” and all issuers were ordered to submit the requested amendments within one week.
Given the speed of operation, Eric Balchunas requested the Commission to quickly authorize the approval of these forms by selecting July 2nd as a potential launch date for the spot Ether ETF. However, the SEC responded late to its second round of comments, although the requests were also described as “light adjustments.”
Following this development and the rapid approach of Thanksgiving in the United States, which will allow for little work to be done next week, Balchunas predicted Work on the S-1 forms is expected to resume on July 8, with approval expected shortly thereafter.
I think unfortunately we’re going to have to push our over/unders back until after the holidays. Seems like SEC took longer to get back to ppl this week (although again very slight adjustments) and from what I hear the following week it’s dead before the BC holidays = July 8th the process starts again and shortly after they’ll be rolling… https://t.co/0ZQR7yiBLt
– Eric Balchunas (@EricBalchunas) June 28, 2024
It should be noted that, unlike Forms 19b-4, Forms S-1 do not have a fixed deadline, with approval depending solely on the SEC’s satisfaction with the terms proposed by the issuers. In early June, SEC Chairman Gary Gensler had declared this process could “take some time”, specifying that approval will largely depend on the responsiveness of applicants to the Commission’s comments.
Ethereum Spot ETFs Expected to Quickly Reach $1 Billion Inflows
Meanwhile, investors and analysts have remained optimistic about the potential performance of Ethereum Spot ETFs when they eventually begin trading. In a Message On June 28, Charles Yu, vice president of research at Galaxy Research, backed these funds to receive at least 20-50% of the demand seen in Bitcoin counterparts.
With total Bitcoin Spot ETF inflows estimated at $15 billion, Yu predicts that Ethereum ETFs will see $1 billion in monthly inflows in the first 5 months of trading. Additionally, Charles Yu expects Ethereum to show higher price sensitivity to these inflows for a variety of reasons, including lower net inflation and a lower percentage of supply on exchanges.
Featured image from Space.com, chart from Tradingview
