By
Godfrey Benjamin
June 28th, 2024
Many crypto enthusiasts expected that trading of the spot Ethereum ETF should follow its launch immediately, as it was with Bitcoin ETFs.
Digital currency investors in the United States may not have to wait for long before the newly approved spot Ethereum ETF products go live for trading. The broader crypto industry is talking about the possibility of the S-1 approval for these products and many experts have weighed in on the matter, predicting a potential timeline for the Securities and Exchange Commission (SEC) to give a nod.
Spot Ethereum ETF Launch Expected by July 4th
ETF Prime podcast host Nate Geraci speculated that the approval may come in the next few weeks. While he expressed uncertainty about the exact date for the SEC’s decision, he capped the coming of the S-1 approval at a maximum of 2-3 months.
Recalling how swift trading started in the Bitcoin ETFs case, Geraci strongly believes that the securities regulator may likely expedite Ethereum ETF trading too.
In his opinion, the US SEC has already done a significant part of the work with the approval of spot Bitcoin ETFs and Ethereum futures ETFs. Therefore, he speculated that it may just be a matter of how long the SEC wants to string this out. Senior ETF analyst at Bloomberg Eric Balchunas proposed around July 4, 2024, as the potential timeline for the spot Ethereum ETF S-1 approval.
“July 4th feels like a good over/under,” Balchunas added. Geraci concurred to this potential date “I like it… I’ll take under, but right timeframe IMO.”
Though not as swift as Bitcoin ETFs, if the approval comes within the speculated date, it would still be considered early, especially with the unclear security status of the underlying cryptocurrency and other regulatory implications.
Correcting Misconceptions about ETH ETF Launch
Many crypto enthusiasts expected that trading of the spot Ethereum ETF should follow its launch immediately, as it was with Bitcoin ETFs. However, the difference between SEC approval and the actual ETF launch was explained by Bloomberg ETF analyst James Seyffart. He highlighted the misconception that approval of the 19b-4 and S-1 forms would happen simultaneously.
After the approval of the eight spot Ethereum ETFs which happened on May 23rd, he noted that “we also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus a live Eth ETF.”
Seyffart elaborated on this fact based on trends with general ETF approvals while emphasizing the minimum time gap before the actual launch of the products.
The final approval and launch are often a result of bi-directional communication between the SEC and the applicants. Fortunately for spot Ethereum ETFs, this communication process started last week, igniting hope for a positive outcome soonest. Noteworthy, the crypto ecosystem is still excited about how far talks have come on the Ethereum ETF subject.
Geraci and Balchunas’s optimism underscores the broader crypto industry’s sentiment on the high demand for the product.