Bitrabo Editorial
Analyst Eric Balchunas from Bloomberg has adjusted the timeline for the introduction of Ethereum Spot ETFs in the US due to recent interactions with the Securities and Exchange Commission regarding the S-1 forms submission.
Response from SEC on S-1 Forms Delayed
In a surprising move in May, the SEC approved the 19b-4 filings from eight potential Ethereum spot ETF issuers, marking the initial step towards these investment products’ future debut. The Commission is now expected to give the green light to the S-1 forms of these proposed ETFs before trading can begin. These forms outline the ETF’s objectives, strategies, risks, fees, and more.
After all draft S-1 forms were submitted on May 31, the SEC responded swiftly with minor comments, requiring all issuers to make the requested changes within a week. Balchunas had initially projected a potential launch date for the Ether spot ETF on July 2, considering the pace of operations. However, the SEC delayed its response on the second round of comments, although the amendments required were described as minor adjustments.
Due to this delay and the upcoming US Thanksgiving holiday limiting work next week, Balchunas expects work on the S-1 forms to resume on July 8, with approval to follow shortly after.
Anticipated Inflows for Ethereum Spot ETFs
Investors and analysts remain optimistic about the performance of Ethereum Spot ETFs once they begin trading. Charles Yu, Vice President of Research at Galaxy Research, predicts that these funds will attract a significant portion of the demand seen in Bitcoin counterparts. Yu expects Ethereum ETFs to observe $1 billion in monthly inflows during the initial five months of trading, compared to the estimated $15 billion inflows for Bitcoin Spot ETFs. Additionally, Yu anticipates Ethereum to demonstrate higher price sensitivity to these inflows due to lower net inflation and a lower supply percentage on exchanges.