At the request of the U.S. Securities and Exchange Commission (SEC), several asset managers have filed updated S-1 registration statements for spot Ethereum ETFs, taking a step toward approval.
SEC Requests Amendment of S-1 Filing
Several Ethereum spot ETF applicants have updated their S-1 registration statements with the SEC. This is the last step before launching an ETF product. The SEC requires new documents to speed up the review process.
Asset managers including VanEck, Grayscale, Fidelity, BlackRock, 21Shares, Franklin Templeton and Bitwise filed amended S-1 statements on Monday. The filings reflect the issuers’ compliance and preparedness.
Understanding the Spot Ethereum ETF
Spot Ethereum ETFs are investment funds that hold Ethereum and trade on stock exchanges like traditional stocks or commodities. The SEC approved the issuer's spot ETH ETF 19b-4 application on May 23, but still needs to approve the S-1 filing before it can begin trading. The SEC must now review the revised form and communicate any final adjustments required before final approval.
Expected approval
Experts say the SEC's request for updated documents increases the likelihood of approval of the spot Ethereum ETF application. The current situation is similar to the approval process for the spot Bitcoin ETF in January 2024, which raises expectations for a positive outcome.
Top analysts predict that the SEC will approve the updated draft within two weeks, as issuers have already completed most of the preparation work. Bloomberg analyst Eric Balchunas commented:
“VanEck just sent in their first S-1 today… They’ve already collected their fees, so there’s really nothing to look at; they’re just pushing the buck back to the SEC. The rest are all pending today except for Bitwise, which completed their filing last week.”
Market Impact and Forecast
Ethereum users are optimistic about the potential market impact of the spot ETF listing, and expect a large influx of institutional funds. Similar to the Bitcoin ETF, ETH holders expect price increases to offset previous losses. Currently, Ethereum is trading at $2,983, down 20% from the price when the 19b-4 application was approved.
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If Ethereum follows past patterns, once the spot ETH ETF begins trading, it could experience a brief period of consolidation followed by a surge in price. This pattern played out between April 12 and May 21, when Ethereum initially fell, then stabilized and then rose after the SEC approved the 19b-4 application.
The updated S-1 statement marks a critical step toward approval of these spot ETH ETFs. There are high hopes for it, with experts predicting positive results and potentially significant impact on the Ethereum market.
