Spot Ether ETFs Set for Potential U.S. Launch in Early July

Bloomberg analyst Eric Balchunas anticipates spot Ether (ETH) exchange-traded funds (ETFs) will commence trading in the U.S. by early July.

In a revised forecast, Balchunas has set the over/under date for the official launch of these ETFs to July 2. He highlighted that the U.S. Securities and Exchange Commission (SEC) staff had provided comments on the S-1 filings, describing them as “pretty light” and free from significant issues. The SEC has requested responses within a week, suggesting a probable approval ahead of the holiday weekend.

Balchunas emphasized that while the exact timeline remains uncertain, this is their best estimate. On June 13, SEC Chairman Gary Gensler, during his testimony to Senator Bill Hagerty, indicated that the approval of the S-1 filings for spot Ethereum ETFs is anticipated by the end of the summer. This has bolstered expectations that, despite potential delays, approval is likely within a few months.

The issuers of these ETFs are currently awaiting feedback from the SEC’s Division of Corporation Finance (Corp Fin) on their S-1 filings submitted two weeks prior. The delay is attributed to Corp Fin reviewing these documents for the first time, a process complicated by an unexpected political shift within the SEC. This has left Corp Fin adjusting priorities and processing timelines.

Some market observers speculate that Ethereum ETFs may not garner as much interest as Bitcoin (BTC) ETFs due to the lack of staking features. SEC Commissioner Hester Peirce, known for her liberal stance on cryptocurrencies and dubbed “Crypto Mom,” has noted the SEC’s historical classification of Ether as a security, in contrast to Bitcoin’s commodity status, which complicates the approval process for Ethereum ETFs.

Progress and Prospects

The SEC’s recent actions mark a significant milestone for Ethereum ETFs. On May 23, the SEC approved eight 19b-4 filings, a regulatory step allowing exchanges to list new securities. However, trading will not commence until the corresponding S-1 registration statements receive final approval. These forms propose amendments to current rules or regulations, indicating the SEC’s preliminary endorsement for listing the ETFs, though trading cannot begin immediately.

This development represents a notable advancement in the approval journey for Ethereum ETFs, eagerly anticipated by the cryptocurrency community. The SEC is concurrently reviewing the S-1 registration statements from Ethereum ETF issuers, which provide detailed information on the companies and their proposed securities.

As of now, Ethereum (ETH) is trading at approximately $3,562.97, reflecting a 2.5% increase over the last 24 hours, yet showing a 3.5% decline on a weekly basis according to CoinGecko data.

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