The U.S. Securities and Exchange Commission (SEC) has initiated discussions with prospective Ethereum ETF issuers regarding S-1 registration statements, according to a source.
“Basically, it’s just starting,” said a high-ranking member at an issuer when asked about conversations relating to S-1 forms. “It feels a little like [the Division of Investment Management] was more-or-less caught off-guard by the change of tune. So, just starting.” The source added that while they don’t expect progress toward an Ethereum ETF to be scrapped, they remain cautious.
For Ethereum ETFs to gain approval, the SEC must approve the 19b-4 forms — as was done in an omnibus order for Bitcoin ETFs — followed by the S-1 registration statements becoming effective before trading can commence. Typically, these forms are sent back for amendments and refiled. Once final versions are submitted, the SEC may approve them. While there has been significant movement on the 19b-4 forms, only Fidelity has recently filed an amended S-1 form. With discussions on the S-1s now underway, more amendments may be forthcoming.
The SEC faces a decision today regarding the VanEck Ethereum ETF’s 19b-4 form. Due to the perceived intent to approve multiple issuers simultaneously, as happened with Bitcoin ETFs, there is optimism that approval could occur today. Bloomberg ETF analyst Eric Balchunas noted on X that he anticipates the SEC will make a decision around 4 p.m. ET. “For spot BTC, they dropped it at 3:45 p.m., some others in the past were slightly after 4 p.m. Anything is possible though,” he said.
However, even if the 19b-4 forms are approved, it might take additional time before the S-1 forms are ready and effective, potentially delaying the start of trading. As Balchunas mentioned in a recent interview with The Block, “I don’t know how fast the fast track is, but it’s going to be probably a mad scramble for the next couple of days, maybe even weeks — depends on the S-1.”