Ethereum
Ethereum ETF launch next month becomes ‘definitely possible’ with S-1 submissions
Enthusiasm is growing in the crypto space as new approved Spot Ether (ETH) exchange-traded funds (ETFs) could launch as early as mid-June. However, this development still depends on how quickly approved customers amend their S-1 registration statements and the subsequent comment rounds they receive from the Securities and Exchange Commission (SEC).
Bloomberg ETF analyst James Seyffart suggests that S-1 approvals could come within weeks, but he also acknowledges that the process is expected to take several months. However, fellow analyst Eric Bachunas remains optimistic, expecting a mid-June launch. He says the SEC feedback process took about two weeks to spot Bitcoin ETFs.
Rapid movements of candidates
After 19b-4 filings are approved, the next step for these funds is to obtain S-1 registration statement approvals, which are crucial to initiating trading. VanEck was quick to amend his S-1 after his 19b-4 approval, and other applicants are expected to follow suit as soon as possible.
However, there is a potential challenge. The SEC’s Division of Trading and Markets approved the filings on a “delegated authority” basis. This means that any of the five SEC commissioners can challenge the decision again within the next ten days. Nonetheless, digital assets attorney Joe Carlasare pointed out that such a scenario is highly unlikely, as the decision would not have passed if it had not obtained unanimous consent from the commissioners.
Market expectations and analyst forecasts
Seyffart also predicts that if S-1 is approved, spot Ether ETFs can attract 20% of the investment flows seen by Bitcoin ETFs. However, Balchunas expects a more conservative flow of 10-15%. Since the launch of Bitcoin ETFs, they have collected a net inflow of $13.3 billion over approximately four and a half months. Therefore, if the spot Ether ETF is successful by capturing 20%, it could raise an impressive $2.66 billion over the same period. This potential is of interest to investors hoping to diversify their crypto assets.
Learn more: Ethereum Poised for 60% Surge as Spot ETF Approval Looms: QCP Report
The Future of Grayscale’s Ethereum Trust
Despite the prevailing optimism, some concerns remain about the impact of these new ETFs on existing products like the Grayscale Ethereum Trust, which currently holds more than $11.3 billion. Additionally, the trust could experience a significant capital outflow as investors may prefer the new ETFs.
Historically, Grayscale’s Bitcoin Trust has experienced outflows when converted to ETF form. Major players including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Bitwise and Invesco Galaxy received regulatory approval on Thursday, May 23, highlighting a strong lineup currently poised to meet market expectations . request. However, the only applicant that did not receive approval that day was Hashdex, highlighting the competitive and complex nature of the ETF approval process.