Bitrabo Editorial
There is growing anticipation within the cryptocurrency community regarding the impending launch of spot Ethereum ETFs, with close scrutiny on the US Securities and Exchange Commission (SEC) for a decision. Noteworthy industry insiders have shared insights and forecasts on the probable timeline for approval, leveraging their knowledge of SEC actions and the current market landscape.
Anticipated Launch Period for Spot Ethereum ETFs
Nate Geraci, host of the widely followed ETF Prime podcast and a respected figure in the ETF sector, has shared his predictions on the SEC’s approval process.
Geraci expressed his thoughts on Twitter, mentioning:
Speculating on when the SEC might approve spot Ethereum ETF registration statements is challenging, but I anticipate it happening in the next few weeks, with a maximum timeline of 2-3 months. In my opinion, the groundwork has largely been laid following the approval of spot Bitcoin ETFs and Ethereum futures ETFs. The main factor now is how long the SEC intends to prolong the process.
This sentiment resonates with a prevailing industry outlook that the groundwork set by previous cryptocurrency ETF approvals could expedite the process for Ethereum. Eric Balchunas, Senior ETF Analyst at Bloomberg, suggested a specific timeframe, hinting at “July 4th as a reasonable estimation.”
Geraci responded optimistically to this timeframe, stating, “I agree… I think it might happen sooner, but the timeframe seems accurate from my perspective. It aligns well with the 19b-4 approval leading into the Memorial Day weekend.” This exchange underscores a critical period that experts are closely monitoring.
The regulatory path for Ethereum ETFs has been intricate, marked by eager anticipation and setbacks. The green light received for the 19b-4 filings of eight Spot Ethereum ETFs on May 23 marked a significant milestone.
However, according to Bloomberg analyst James Seyffart, “We also require S-1 approvals. It might take weeks to months before we see S-1 approvals and consequently a live Eth ETF.” The S-1 form, essential for registering new securities with the SEC, presents another obstacle in the approval process.
Seyffart’s analysis underscores the misconception that the approval of 19b-4 and S-1 forms may occur simultaneously, as was the case with spot Bitcoin ETFs. He elaborated that the SEC typically enforces a waiting period between approvals and the launch of ETF products, necessitating thorough communication between the regulator and applicants.
The discussion between Geraci and Balchunas not only provides insight into their expectations but also signifies broader optimism within the industry. Their conversation indicates that previous approvals of spot Bitcoin ETFs and Ethereum futures ETFs likely resolved some regulatory complexities that could have delayed the swift approval of spot Ethereum ETFs.
At the time of reporting, the price of ETH stood at $3,860.