Ethereum
SEC Chairman Hints at Slower S-1 Approval for Ethereum ETFs
The path to the launch of Ethereum spot ETFs appears to be expanding, as SEC Chairman Gary Gensler suggests that approval of the necessary S-1 forms “will take some time.”
This development follows the recent approval of Forms 19b-4 but indicates a potentially prolonged finalization phase for the S-1 Formsessential for ETFs to begin trading.
Gensler’s Comments on S-1 Approval for Ethereum ETFs
In an interview on CNBC regarding a Digital Assets Subcommittee hearing, SEC Chairman Gary Gensler said that additional steps for ETF approval involving Ethereum are not at hand. This statement was made amid the SEC’s instructions to issuers to submit their proposed S-1 filing by last Friday.
After this submission, the SEC is expected to give its first comments, which will in turn lead to further changes. Industry insiders estimate that this iterative process could take several weeks or even months.
This was demonstrated by the fact that key financial institutions like VanEck and BlackRock filed updated Forms S-1 after the approval of Forms 19b-4 on May 23. black rock detailed that its ETF would have an initial asset base of $10 million, demonstrating the preparation and capital support of these strategies.
Impact on the Ethereum ETF Market and Investor Expectations
There is a lot of enthusiasm around ETH ETFs, in particular due to the possibility of significant capital inflows into the market. According to a report by K33 Research, Ethereum spot ETFs could generate investments of $4 billion in the first five months of their launch.
This estimate is derived from comparing the Bitcoin product to other BTC offerings and the growing institutional demand observed via Ethereum futures trading on the CME.
It is expected that this influx will contribute to a large part of the circulating flows. Ethereum Supply, which will further reduce supply on the market. K33 Research also expects the arrival of these ETFs to lead to a new all-time high for ETH prices, as these products have been associated with similar market trends in the past.
Regulatory steps and market readiness
Thus, the detailed review process that the SEC currently uses in its interactions with ETF issuers indicates the commission’s cautious approach to regulating these important financial instruments.
The longer review period also entails detailed scrutiny, which could be attributed to the complex structure of the underlying assets and related potential regulatory difficulties.
Companies like BlackRock have moved quickly, indicating strong market demand and a willingness by established financial entities to adopt these new investment vehicles. At the same time, the withdrawal of proposals from certain companies, such as Hashdexhighlights the different levels of preparation and strategic repositioning within the industry
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