The SEC has finally given the green light to eight Ethereum ETF applications. ETFs now require trading S-1 approval. Issuers will launch Ethereum ETFs on CBOE, NYSE ARCA and NASDAQ. Bipartisan pressure may have accelerated SEC approvals of ETFs.
Spot Ethereum ETF approval process
cryptokoin.com As we reported, the SEC approved the 19b-4 filings of VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy and Bitwise. The SEC gave these approvals on the night of May 23, in line with expectations. This meant a change of tune for the SEC regarding Ethereum ETFs. This decision was quite unexpected due to the SEC’s inaction in interacting with issuers. So, this raised questions about approving the proposal in the first place. However, Hashdex, whose application will expire on May 30, was not included in the list of companies that received approval.
These ETFs are planned to be listed on three national exchanges: CBOE, NYSE ARCA and NASDAQ. Thus, the products will increase Ethereum’s reach to a wider pool of investors. Despite approval of 19b-4 forms, trading cannot begin until issuers receive approval for S-1 registration statements. If the process is rushed through, it could take several weeks to complete, according to Bloomberg’s James Seyffart. However, there were cases where such approvals took more than three months.
House lawmakers push for Ethereum ETF
Many people did not expect an approval from the SEC. So political pressure likely played a role in the surprise approval of these Ethereum ETFs. Earlier in the day, a group of House lawmakers called on the SEC to approve ETFs in a letter.
They noted that approval of such a product would be more consistent with the standards imposed by the SEC after it adopted the approval of spot Bitcoin ETFs earlier this year. Experts consider this political pressure as one possible explanation for the SEC’s change of heart. This is a complete turnaround from the agency’s position of engaging with issuers, which began earlier this week. Some at the SEC say parts of the agency were caught off guard by the rapid approval.
What are the next steps for Ethereum ETF?
But Ethereum ETFs may have a different outcome compared to Bitcoin ETFs, according to market experts like Bloomberg’s Eric Balchunas. Balchunas estimates that Ethereum ETFs could attract 10-15% of what Bitcoin ETFs are expected to raise, or $5-8 billion in the first few years. This prediction is less ambitious compared to Bitcoin ETFs. However, it is still a significant amount for a new investment product.
At the same time, QCP Capital made a bullish prediction on the value of Ethereum before the approval of the ETFs. In this regard, he predicted that Ethereum will rise above $6000. This optimism is based on expectations of institutional funding and increased market availability. Following approval of their 19b-4 filings, issuers are now focused on obtaining approval for their S-1 registration statements. This step is critical for ETFs to begin trading. The SEC has already begun discussions with issuers regarding S-1 forms. However, the timeline for approval has not yet been determined.
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