Ethereum
Crypto-Wait-Extended-ETF for Ethereum,
3:00 p.m. ▪ 4 min reading ▪ by Evans S.
Crypto industry players have their eyes on the US SEC, as the wait for approval of Ethereum ETFs (exchange-traded funds) drags on. Since the submission of the first draft S-1 forms on May 31, the issuers of these ETFs have been in anticipation, awaiting comments from the SEC. Although this bureaucratic slowness is frustrating, it is not unusual in the financial world. Let’s explore the details of this situation and its implications for the cryptocurrency market.
The approval process for ETFs Ethereum is at a crucial stage. Issuers, after submitting their S-1 forms, expected to receive comments from the SEC around June 7.
However, to date, no response has been received, leaving issuers in a situation of uncertainty. This wait is not just a matter of formalities; it also delays the launch of innovative financial products that could attract considerable investment.
Comments from SEC Chairman Gary Gensler on CNBC were not particularly reassuring. He mentioned that approving the S-1 forms “will take time,” without providing a specific timeline.
This adds an additional layer of frustration for issuers and potential investors. The question that arises is: how much longer will this situation continue? Reportedly, the S-1 forms may require two additional rounds of revisions before they are ready.
Preparations for the launch of Ethereum ETFs
Despite the uncertainty, issuers are actively preparing for the launch of their Ethereum ETFs. These preparations are essential to ensure that once SEC approval is received, products can be brought to market quickly.
Form S-1 represents the second step in the approval process, the first being the approval of Forms 19b-4, obtained on May 23.
The draft filings also reveal interesting details about future Ethereum ETFs. For example, BlackRock plans to launch its ETF with a starting capital of $10 million, while Franklin Templeton plans to start with a fee of 0.19%.
These figures show the extent of the preparations and the commitment of major financial institutions to this new product.
The big question is whether Ethereum ETFs can replicate the success of Bitcoin ETFs. Since their launch, Bitcoin ETFs have attracted significant investment flows and expectations are high for Ethereum ETFs.
Jag Kooner, head of derivatives at Bitfinex, estimates that these new products could capture around 10-20% of flows going to Bitcoin ETFs. This estimate, although conservative, highlights the significant potential of Ethereum ETFs.
However, several factors could influence this success. One of them is how the SEC handles the approval process and associated deadlines. The longer the wait, the more likely investors will become impatient and look elsewhere for alternatives. Additionally, market conditions and price developments of the Ethereum crypto will also play a crucial role in attracting investments.
The coming months will be crucial to observe how this situation evolves and what impact it will have on the broader cryptocurrency market. The crypto industry, always dynamic and full of surprises, undoubtedly has many other interesting developments in store for us.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has never stopped researching the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.