Final Step: Ethereum ETF Applicants File Amended S-1s with SEC

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As requested by the U.S. Securities and Exchange Commission (SEC), several asset managers filed updated S-1 registration statements for Spot Ethereum ETFs, thus taking a step toward potential approval.

SEC’s Request for Amended S-1 Filings

Multiple applicants for Spot Ethereum ETFs updated their S-1 registration statements with the SEC. This move represents the final step before launching their ETF products. The SEC’s request for new filings aims to expedite the review process.

On Monday, asset managers, including VanEck, Grayscale, Fidelity, BlackRock, 21Shares, Franklin Templeton, and Bitwise, submitted their amended S-1 statements. This submission followed the SEC’s July 8 deadline, reflecting compliance and readiness among issuers.

Understanding Spot Ethereum ETFs

Spot Ethereum ETFs are investment funds holding Ethereum and trading on stock exchanges like traditional stocks or commodities. The SEC approved issuers’ Spot ETH ETF 19b-4 applications on May 23 but must still greenlight the S-1s before trading can start. The SEC must now review the amended forms and communicate any final adjustments needed before giving ultimate approval.

Anticipation of Approval

Experts suggest that the SEC’s request for updated filings increases the likelihood of approval for Spot Ethereum ETF applications. The current situation is reminiscent of the Spot Bitcoin ETF approval process in January 2024, heightening expectations for a positive outcome.

Top analysts predict that the SEC will approve the updated drafts within two weeks, as issuers have completed most of the preparatory work. 

Bloomberg analyst Eric Balchunas commented, 

“First S-1 just rolled in today from VanEck… they already had their fee, so nothing to see here, really; they just putting the ball back in SEC’s court. Expecting the rest today except for Bitwise, who did theirs last week.”

Market Impact And Projections

Ethereum users are optimistic about the potential market impact of Spot ETF listings, expecting significant institutional inflows. Drawing parallels with Bitcoin ETFs, ETH holders anticipate price increases that could counteract previous losses. Currently, Ethereum trades at $2,983, down 20% from the 19b-4 application approvals.

If Ethereum follows a pattern similar to its past performance, it might experience a brief consolidation period followed by a price spike once Spot ETH ETFs begin trading. This pattern was observed between April 12 and May 21, when Ethereum initially dropped before stabilizing and then rising after the SEC approved the 19b-4 filings.

Therefore, the updated S-1 statements mark a crucial step toward potential approval for these spot ETH ETFs. The anticipation is high, with experts predicting a positive outcome that could significantly impact the Ethereum market.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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