Potential Ethereum ETF issuers were expecting the SEC to comment on their draft application by the end of last week. However, the SEC has remained silent on the matter. In a hot development today, SEC Chairman Gary Gensler signaled a possible date for Ethereum ETFs. Accordingly, Gensler expects Ethereum spot ETF S-1 to be approved in the summer.
SEC Chairman: Ethereum ETFs get S-1 approval in the summer!
As you have been following on Kriptokoin.com, the SEC recently gave the green light to spot Ethereum ETF applications. However, it still needs to approve the S-1 forms before trading of these products can begin. For some time now, the market has been buzzing with predictions as to when this approval will happen. Finally, SEC Chairman Gary Gensler pointed to a timeframe. In a meeting with US Senator Bill Hagerty, Gensler predicted that the S-1 forms will be approved by the end of the summer. Fox correspondent Eleanor Terrett announced the development on her X account with the following statement:
Clarifying details: Gensler said “over the course of this summer” and Hagerty said “by the end of the summer.”
Gensler: “I would envision sometime over the course of this summer…”
Hagerty: “If you are telling me that those applications will be approved by the end of the summer, I appreciate that.
Gensler’s expectation is in line with market analysts’ predictions that approval will take place in June and July. The SEC previously approved 19b-4 filings for spot Ethereum ETFs in May. However, these ETFs require additional approval of S-1 filings to begin trading.
Potential spot Ethereum ETF issuers are waiting
Issuers anticipated that the SEC would comment on these drafts on June 7. However, at least two issuers have yet to receive anything. One source said they expect comments to come back this week. This comes after SEC Chairman Gary Gensler said on CNBC last week that approval of the S-1 forms “will take some time.” It is unclear exactly how long the process will take. A source previously said that they expect the S-1 forms to go through at least two more rounds of draft filings before they are ready.
Ethereum prepares for ETF launches
The S-1 forms are the second step in a two-step process towards the start of trading of spot Ethereum ETFs. The first step was the approval of forms 19b-4, which took place on May 23. The draft filings also reveal a few details. BlackRock will seed its ETF with $10 million, while Franklin Templeton plans to start with a 0.19% fee.
Once spot Ethereum ETFs go live, a key question will be whether they can try to replicate the success of spot Bitcoin ETFs. Jag Kooner, Head of Derivatives at Bitfinex, estimates that they will bring in around 10-20% of the flows going into spot Bitcoin ETFs.
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