Ethereum
SEC Issues Comments on Form S-1 for Ethereum ETFs – Response Deadline This Friday
The United States Securities and Exchange Commission (SEC) has issued comments to issuers of Ethereum spot ETFs regarding their S-1 forms. These comments are crucial to the evolution of these ETFs, which aim to provide investors with exposure to Ethereum through a regulated product.
With a tight response deadline set for Friday, pressure is on for issuers to respond quickly to the SEC’s comments.
In recent years, there has been growing interest in Ethereum spot ETFs, which would allow investors to gain exposure to Ethereum without having to directly purchase and store the cryptocurrency.
While everything eight transmitters have had their 19b-4 forms approved on May 24, Forms S-1 must be approved by the SEC before trading can begin. These forms contain detailed information about the ETF, including its investment strategy, risks and management.
The SEC’s comments generally address any concerns or questions it has regarding the disclosures provided, and issuers should respond with clarifications or additional details.
Response time
The SEC set Friday as a deadline for issuers to respond to their comments. This deadline is important because it shows the SEC’s commitment to moving the review process forward. Issuers that do not respond in time could face delays in approving their ETFs, which could affect their launch plans.
Final SEC approval by July 2
Earlier in Bloomberg, Senior ETF Analyst Eric Balchunas revealed that the SEC issued relatively light comments on the S-1 filings and requested responses by Friday. This suggests that there is a good chance that the SEC could approve these ETFs the following week, around July 2.
The second did not clarify when the S-1 forms will be approved beyond any precision this summer. SEC Chairman Gary Gensler said the timeline would largely depend on how quickly issuers respond to the agency’s comments.
Although the impact of Ethereum ETFs is uncertain, some analysts predict that they could capture up to 20% of the flows seen by Bitcoin ETFs.