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 remains the most anticipated development in the market.
During a Senate Banking Committee hearing on June 13 to discuss 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, while the Ethereum Spot ETF has received a “semi-approval,” Gensler continues to maintain his uncertain position 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 is granted. Eric Balchunas, an ETF analyst at Bloomberg, believes that the launch of Ethereum products on U.S. exchanges in June is possible, but conservatively estimates that the SEC will obtain final approval before July 4.
“July is a complete guess both in the past and present,” said ETF analyst James Seyffart on X. “But I am more confident in saying that an Ethereum ETF will be launched at some point this summer, which is somewhat expected.”
Updated on May 30, 2024: BlackRock submits S-1 filing
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. Recently, financial giant BlackRock updated its S-1 filing with the SEC, which is seen as a positive sign for the Ethereum Spot ETF application.
Bloomberg ETF analyst James Seyffart stated that BlackRock’s move to update the S-1 filing represents the “issuer and SEC working towards launching the Ethereum Spot ETF.”
Eric Balchunas, an analyst at Bloomberg, also tweeted, “This is a good sign!” and believes that 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 be officially launched on July 4.
Original article from May 28, 2024:
What will happen after the approval of the Ethereum Spot ETF?
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, including applicants such as financial giants BlackRock, Fidelity, and Grayscale, is only one step away from the official listing of the ETF.
This not only enhances the normalization of cryptocurrencies but also has the potential to have a profound impact on the entire financial market.
Currently, most issuers have obtained approval for the “19b-4 form” for Ethereum Spot ETFs, but issuers still need to obtain SEC signatures and complete the “S-1 registration statement” before the spot Ethereum ETF can officially begin trading. After the approval of the Ethereum ETF, what changes it will bring to the market becomes the most concerned issue for the market and the community.
Further reading: [A major milestone in the cryptocurrency world: SEC “semi-approves” 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 the Bitcoin Spot ETF, but with possibly lower trading volume. Balchunas describes this as a “horse race” and predicts that the initial assets under management for the ETF could reach approximately $1 billion.
Meanwhile, Matthew Sigel, Head of Digital Asset Research at VanEck, stated that they are working on creating a “very strong investment case” for Ethereum. He emphasized that compared to Bitcoin, Ethereum has inherent technological advantages, particularly its rich decentralized application (DApp) ecosystem, which is an attractive point for technology and stock investors that cannot be ignored.
With countries like Hong Kong starting to approve Bitcoin and Ethereum Spot ETFs, this move by the United States may inspire other jurisdictions to explore similar products. Yat Siu, Co-founder of Animoca Brands, mentioned that with the progress in the United States, it can be foreseen that countries such as the United Kingdom, Singapore, Japan, and the Middle East may also consider launching their own spot ETFs. He stated that the United States does not want to lag 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 several weeks to months before it can be officially listed and open for trading. According to The Block, traders expect the expected inflow after listing to be around 15-30% of what the Bitcoin ETF saw.
According to data from The Block, the price of Ethereum has skyrocketed since the ETF approval, with a short-term surge breaking through $3,963 and settling around $3,855, representing an increase of about 4.7% in the past week.
The future price trend and development of Ethereum are also likely to be influenced by the upcoming U.S. presidential election.
