According to sources, the SEC told Ethereum ETF issuers to submit revised S-1 forms by Friday. It will likely take several weeks for S-1 forms to go into effect and trading to begin. Meanwhile, JPMorgan issued a pessimistic report for spot Ethereum ETFs.
SEC urgently requested revised S-1 forms from Ethereum ETF issuers!
cryptokoin.comAs you follow from , the march towards approval for trading spot Ethereum ETFs continues. Now the entire market is wondering when the SEC will approve the S-1 forms. The SEC approved forms 19b-4 on May 23. After that, the only remaining step is for the S-1 forms to go into effect before they begin trading. However, the S-1 forms were not prepared in advance because the approvals resulted from a last-minute change of direction by the SEC. Yet issuers are now making progress.
The SEC has asked issuers to submit draft S-1 filings by Friday, according to people familiar with the matter. The SEC will next submit its first round of comments. This will lead to more changes. On the day the ETFs were approved, VanEck wasted no time in submitting a revised version of its S-1 form. On May 30, BlackRock followed suit, announcing that its ETF would be seeded with $10 million.
Is it good to delay approval?
However, the details of seed investments are fairly straightforward for an issuer, one source said. He also hinted that other aspects of the forms may take longer to address. He noted that he expects the S-1 forms to go through at least two more rounds of draft filing before they are ready. Analysts estimate it will take several weeks for S-1s to be returned, and potentially several months if the process moves slowly. But some traders argue that the delay is a good thing.
Pessimistic from JPMorgan spot Ethereum ETF reportu!
Spot Bitcoin ETFs received approval from the SEC in January 2024. Therefore, it has a first mover advantage over potential Ethereum-based ones. Therefore, liquidity inflows into Ethereum ETFs in the US will be significantly lower than expected, the banking giant says in its new report. In a research report, JPMorgan takes a pessimistic stance on potential spot Ethereum ETFs. Experts concluded that the demand for them will be significantly lower compared to Spot Bitcoin ETFs.
Analysts led by Nikolaos Panigirtzoglou say the Bitcoin ETF launch may have already saturated the overall demand for crypto assets by institutions interested in potential ETFs in crypto. That’s why they only expect an inflow of $3 billion across all spot Ethereum ETFs, the report said. If staking is allowed for asset managers launching ETFs, this metric could rise to $6 billion.
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