Bloomberg analyst James Seyffart provided insight into when Spot Ethereum ETFs could start trading if Securities and Exchange Commission (SEC) they were supposed to approve these funds. His comments indicate that it could take weeks or months for these funds to be released, even if approval comes this week.
S-1 filings must be approved before trading begins
Seyffart mentioned in X (formerly Twitter) post that S-1 approvals would be needed before Spot Ethereum ETFs could be launched and that obtaining that approval could take “weeks to months.” He made this statement while also clarifying that their 75% chance of approval applies only to the deadline for 19b-4 filings, with the deadline for VanEck’s and Ark 21Shares being May 23 and 24, respectively.
Seyffart and his colleague Eric Balchunas anticipate that the SEC will likely approve at least VanEck’s application by May 23, as that is the deadline by which the Commission can make a decision on the matter. The SEC was previously expected to reject these requests, largely due to reports that it considers Ethereum to be a security.
However, Balchunas revealed in post The SEC has already shown a willingness to approve these funds, having informed Nasdaq, Chicago Board Options Exchange (CBOE) and Novel York Stock Exchange (NYSE) to update their data.
Insiders too taken over that the SEC’s feedback on these exchanges is a positive sign and shows that the regulator may be ready to approve these mutual funds. Steven McClurg, head of US asset management at CoinShares, as well he said Reuters that Ethereum ETFs could take months to begin trading because, unlike exchange filings, there is no set time frame in which the SEC can approve registration statements.
However, the SEC has shown that it can approve 19b-4 and S-1 filings simultaneously, as it did with Spot Bitcoin ETF, which was launched immediately. The only difference between then and now is the SEC constantly communicated with issuers weeks before Bitcoin ETFs are approved.
Fidelity and grayscale remove staking plans from Ethereum Spot ETFs
Asset manager faithfulness AND Grey scale they have removed their betting plans in their updated S1 submissions. This is to be expected considering the betting feature is a huge part of the SEC’s success roach consider ETH a security. However, the re-removal of this staking offer suggests that the SEC will approve these funds as long as ETH staking is not included.
Meanwhile, Seyffart noticed in Post X that their chances of approval are still 75% because the staking plans were expected to be removed.
According to Ethereum data, it is trading around $3,700 at the time of writing, up over 3% in the last 24 hours. data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
