Cryptos
Ethereum ETF trading draws closer as the US SEC mandates submission of S-1 forms today
The United States Securities and Exchange Commission (SEC) led by Gary Gensler has mandated prospective Ethereum Exchange Traded Funds issuers to submit their amended S-1 forms latest today.
This spells a sooner-than-expected market debut for the newly approved spot Ethereum ETFs and a coming inflow of institutional capital into the crypto space.
Nairametrics earlier reported the first stage of the approval process which involved the approval of the 19b-4 forms which marked a historic shift in position by the US SEC on the issue of approving Ethereum ETFs in the country.
Sources familiar with the situation have reported that the US regulatory agency requested draft S-1 fillings by today from potential Ethereum ETF issuers.
The agency will now go ahead to inspect and give their first round of comments in the remaining episode of the spot Ethereum ETF approval process.
The process of launching an Ethereum ETF or any ETF involves the approval of two pieces of documents by the SEC, the 19b-4 forms and the S-1 forms.
The 19b-4 forms of the potential issuers of Ethereum ETF have already been approved on May 23 in a historic moment as the rest of the crypto world awaits the approval of the S-1 forms which could take months.
Senior ETF analyst for Bloomberg Eric Balchunas pointed out that finalizing the S-1 registration statements could take some time potentially delaying the market debut of the newly approved Ethereum ETF.
Matthew Siegel, head of digital assets research at one of the potential issuers of Ethereum ETF tweeted the opinion of JP Morgan analysts on the predicted time for the Ethereum ETFs to start trading.
The JP Morgan analysts believe it could happen before November citing the underlying political connotations of the whole issue leading up to the November 5 presidential elections in the country.
JPM: “The issuers’ registration statements remain under review by the SEC. As such, there is no anticipated date on when these ETFs will begin trading. We note Galaxy analysts anticipate that S-1s will be finalized and trading may start in July or August 2024. We note this important step yesterday towards the final approval comes after a sudden reversal in regulatory sentiment earlier this week when the SEC seemingly reengaged with stakeholders after months of stalled conversations. We view this ETF approval, and crypto more broadly, as an increasingly political issue ahead of the 2024 U.S. presidential election. As such, we expect trading of the spot ETH ETF to begin well ahead of November.” Matthew Tweeted
The approval of spot Ethereum ETFs followed the earlier approval of spot Bitcoin ETFs in January. The US SEC in general approved 11 spot bitcoin ETFs at once with Blackrock’s IBIT now leading the pack with over $20 billion worth of assets.
What To Know
- The S-1 Form is required by the SEC from domestic issuers as a registration statement before they can publicly offer new securities. This form is often used for initial public offerings (IPOs) and follow-on offerings, but can also be used for other primary and secondary sales of securities.
- The 19b-4 form is used to propose a rule change and is recorded by the SEC. This is necessary when a stock exchange wants to list a new product, like a spot Bitcoin ETF. The form contains detailed information about the proposed rule change and its potential impact.
- Analysts expect Ethereum ETF trading to kickstart an Ethereum bull run driving up its price and benefiting the entire crypto market.
