Bitrabo Editorial
Analyst James Seyffart from Bloomberg shared insights into the possible timeline for the launch of Spot Ethereum ETFs if they receive approval from the Securities and Exchange Commission (SEC). Even with approval this week, it may still take weeks to months before these funds can start trading.
Necessary S-1 Filings Prior to Trading
Before the Spot Ethereum ETFs can commence trading, Seyffart emphasized the importance of S-1 approvals and how it could take a significant amount of time, ranging from weeks to months, to secure this approval. The upcoming final deadlines for 19b-4 filings by VanEck and Ark 21Shares are May 23 and 24, respectively.
Predictions by Seyffart and Eric Balchunas suggest that the SEC might approve VanEck’s application by May 23, as it marks the critical deadline for the Commission’s decision. Recent developments indicate a shift in the SEC’s stance towards approving these ETFs, contrary to initial expectations of denial based on Ethereum being perceived as a security.
Furthermore, indications show that the SEC is open to approving these funds due to growing political considerations. The SEC has encouraged exchanges like Nasdaq, CBOE, and NYSE to update their filings, signaling a positive outlook towards approving these investment vehicles.
Experts anticipate a possible delay of months before the Spot Ethereum ETFs enter the trading market due to the absence of a fixed timeframe for SEC approval of registration filings, unlike exchange filings.
Comparisons to the approval process of Spot Bitcoin ETFs reveal the potential for simultaneous approval of 19b-4 and S-1 filings by the SEC, leading to immediate trading availability, like in the case of Bitcoin ETFs. Notably, constant communication between the SEC and issuers played a crucial role in expediting the approval of Bitcoin ETFs.
Changes in Staking Plans by Fidelity and Grayscale
Asset managers Fidelity and Grayscale have updated their S1-filings by removing staking plans from the Ethereum Spot ETFs, aligning with speculations that staking features could influence the SEC’s view on Ethereum as a security. The exclusion of staking services indicates a probable approval by the SEC, given their stance on this matter.
Seyffart maintains a 75% approval probability post the removal of staking plans, underscoring an anticipated course of action.
As of the latest update, Ethereum is trading at approximately $3,700, showing a 3% increase in the past 24 hours, according to data sourced from CoinMarketCap.