Bloomberg analyst Eric Balchunas has predicted that spot Ether (ETH) exchange-traded funds (ETFs) could begin trading in the U.S. as early as July. Balchunas revised his forecast, setting the over/under date to July 2.
Balchunas noted that the U.S. Securities and Exchange Commission (SEC) staff had reviewed the S-1 filings from ETF issuers and found no major issues. He highlighted that the SEC requested responses within a week, indicating a strong possibility that the ETFs could be approved and become effective before the holiday weekend.
During his June 13 testimony to Senator Bill Hagerty, SEC Chairman Gary Gensler hinted that S-1 filings for spot Ethereum ETFs might be approved by the end of the summer. This statement reinforced the belief that while there might be minor delays, approval is likely in the coming months.
Balchunas also pointed out that the issuers of these ETFs were awaiting feedback from the SEC’s Division of Corporation Finance (Corp Fin) on their S-1 filings, submitted two weeks earlier. He attributed the delay to Corp Fin’s unexpected situation, likely due to a last-minute political shift within the SEC.
Despite the optimism, Balchunas acknowledged uncertainty about how quickly Corp Fin could prioritize and process these filings. Observers have noted that Ethereum ETFs might not generate as much interest as Bitcoin (BTC) ETFs, mainly because they do not offer staking capabilities.
SEC Commissioner Hester Peirce, known for her pro-crypto stance, has expressed skepticism regarding the SEC’s treatment of Ethereum. Peirce highlighted that historically, the SEC has classified Ethereum as a security, unlike Bitcoin, which is considered a commodity. This distinction presents unique challenges for Ethereum ETF approval.
The Journey of Ethereum ETFs
The SEC has initiated the approval process for Ethereum ETFs, marking a significant step forward for the cryptocurrency industry. On May 23, the SEC approved eight 19b-4 filings, though trading cannot commence until the required S-1 registration statements are also approved.
The 19b-4 forms are regulatory filings proposing amendments to current rules or regulations, facilitating the listing and trading of new securities. Approval of these forms signifies the SEC’s authorization for exchanges to list the ETFs, though it does not ensure immediate trading commencement.
This development is a crucial advancement for Ethereum ETFs, eagerly awaited by the crypto community. The SEC is concurrently reviewing the S-1 registration statements filed by Ethereum ETF issuers, which provide detailed information about the companies and the specific securities they plan to offer.
At the time of writing, Ethereum (ETH) is priced around $3,562.97, marking a 2.5% increase over the last 24 hours. Despite this rise, Ethereum remains down by 3.5% on a weekly timeframe, according to CoinGecko data.
As the market anticipates the potential launch of Ethereum ETFs, the coming months could prove pivotal for the cryptocurrency landscape.
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