Potential issuers of an Ethereum spot ETF are awaiting comments from the U.S. Securities and Exchange Commission (SEC) on their S-1 filings submitted on May 31.
However, their wait might soon be over. Reportedly, SEC Chairman Gary Gensler has confirmed that the approval of the S-1 filing for a spot Ethereum ETF could occur by late summer, potentially between June and August.
SEC Chair Hints at S-1 Application Approval
In a recent update regarding the spot Ethereum ETF, SEC Chairman Gary Gensler hinted at a possible timeline for the ETF’s approval. According to Fox reporter Eleanor Terrett, Gensler conveyed to Senator Bill Hagerty his expectation that the approval process for the ETF S-1 application might be completed by late summer this year.
The SEC recently approved the 19b-4 forms for several Ethereum ETF issuers, including VanEck and BlackRock, signaling a surge in cryptocurrency adoption. However, the S-1 form, which requires comprehensive ETF details, is still pending approval.
According to a source familiar with institutional discussions, issuers initially expected feedback on their drafts by June 7, anticipating the SEC’s comments.
However, issuers are still awaiting feedback, now expected by late summer. Based on Chairman Gary Gensler’s statement on CNBC, the approval of the S-1 form will take considerable time, with final approval anticipated between June and August.
The S-1 form represents the second phase in a two-step process to enable the trading of a spot Ethereum ETF. The first step involved the approval of the 19b-4 form, which occurred on May 23.
Initial filings disclosed several key details: BlackRock started its ETF with $10 million in seed funding, while Franklin Templeton sought to begin trading with a 0.19% fee.
Spot ETH ETF Might Attract Bitcoin Funds
Hagerty has criticized the rules set by Gensler for the cryptocurrency market, expressing concern that the agency’s “obstacles” might drive U.S. companies overseas. He stated, “You are not prioritizing the areas that urgently need rulemaking,” emphasizing the necessity for a constructive framework.
Today, when asked if ETH is a commodity, Gensler did not give a definitive yes or no answer, maintaining his agency’s uncertain stance on the asset.
In the same meeting, when asked if it is a commodity, Commodity Futures Trading Commission Chairman Rostin Behnam responded, “Yes.”
As spot Ethereum ETFs enter the market, a significant question arises: Will they perform as well as Bitcoin ETFs? Bitfinex’s Jag Kooner believes they could attract around 10-20% of the funds from Bitcoin ETFs.
A Bitfinex analyst discussed how fund managers might shift funds between different ETFs to manage risk. He said, “When gold ETFs were launched, they attracted significant funds, affecting other financial products related to gold.
The same might happen with Ethereum ETFs. Fund managers might alter the amount of money they allocate between Bitcoin and Ethereum.”
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