The possible approval of Spot Ethereum ETFs has become a hot topic in the financial world. Many industry experts are sharing their thoughts on when the U.S. Securities and Exchange Commission (SEC) might approve them. Nate Geraci, the host of the ETF Prime podcast, recently mentioned that the approvals could happen within a few weeks.
Nate Geraci, the founder of ETF Institute, believes that the S-1 approval for Ethereum ETFs should come in a few weeks. Senior Bloomberg ETF analyst Eric Balchunas echoed a similar sentiment and suggested a potential approval date. Earlier, James Seyffart had warned the community about possible delays in S-1 approval for these ETFs due to regulatory reasons.
Expert Predictions on the Approval Timeline for Spot Ethereum ETFs
In a post on X, Nate Geraci, founder of ETF Institute, stated, “When will SEC approve spot eth ETF registration statements? Nobody knows for sure, but my expectation would be next few weeks. 2-3 months max.” Geraci believes that the approval process for Spot Ethereum ETFs could be expedited due to the swift approval of Bitcoin ETFs previously. He argued that the SEC has already done much of the “heavy lifting” with the approval of Spot Bitcoin ETFs and Ethereum futures ETFs, suggesting it may just be “a matter of how long SEC wants to string this out.”
Eric Balchunas, a senior ETF analyst at Bloomberg, engaged with Geraci’s post, proposing a potential approval timeline around July 4, 2024. Balchunas stated, “July 4th feels like a good over/under.” Geraci concurred, adding, “I like it… I’ll take under, but right timeframe IMO.”
Therefore, it can be rightly said that the S-1 approvals could take more than a month. Although the green light might not be as swift as it was for Bitcoin ETFs, it is still early considering the ongoing debate around Ethereum’s status and other regulatory implications. Thus, the chances of the commencement of Spot Ethereum ETF trading in the coming month are very low.
Insights into the Approval Process for Spot Ethereum ETFs
The above-mentioned exchange follows Bloomberg analyst James Seyffart’s detailed exposition on the approval process. Earlier, Seyffart emphasized the difference between SEC approval and the actual ETF launch. The 19b-4 filings for eight spot Ethereum ETFs were approved on May 23. However, Seyffart noted that the next critical step involves the approval of the S-1 forms, which might take longer. He explained, “We also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus a live Eth ETF.”
Seyffart highlighted the misconception that the approval of the 19b-4 and S-1 forms would happen simultaneously, as it did with the Spot Bitcoin ETF approval. He clarified that the SEC’s approval of these forms typically involves a minimum time gap before the actual launch of the products. This process requires bi-directional communication between the regulator and the applicants, a dynamic that only started this week. In the case of Spot Bitcoin ETF approval, this interaction spanned several weeks. Given this context, the timeline for the approval and subsequent launch of Spot Ethereum ETFs remains uncertain.
However, the optimism shared by experts like Geraci and Balchunas suggests that the financial community could see significant progress in the coming months. As Geraci noted, the SEC has already navigated the complexities of similar ETF approvals, which might streamline the current process for Ethereum.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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