The push to approve spot Ethereum (ETH) ETFs for trading is intensifying, with the focus now on the S-1 forms. Following the approval of the 19b-4 forms on May 23, the next crucial step is for the S-1 forms to become effective. Since the SEC’s approval came unexpectedly, the necessary S-1 forms were not pre-prepared. However, progress is now being made.
A source told The Block that while the seed investment details are straightforward for issuers to include, other aspects of the S-1 forms might take longer to address. They anticipate that the S-1 forms will undergo at least two more rounds of drafts before being ready for approval.
Analysts expect the turnaround for the S-1s to take a few weeks, potentially extending to a few months if the process proceeds slowly. Some traders view the delay as potentially beneficial, allowing for a thorough review and solid preparation.
The rapid action by VanEck and BlackRock demonstrates the urgency and importance of this development within the crypto industry. The approval of spot Ethereum ETFs follows a similar trajectory to that of Bitcoin ETFs, which saw significant interest and approval earlier this year. The SEC’s willingness to engage and provide feedback indicates a growing acceptance of crypto-based financial products, albeit with cautious and rigorous oversight.
The SEC’s request and the subsequent actions by major financial players signal a pivotal moment for Ethereum ETFs. As the approval process continues, market participants and analysts will closely watch the SEC’s comments and the amendments made by issuers. The successful launch of these ETFs could further legitimize Ethereum as a mainstream investment asset, potentially paving the way for additional crypto ETFs in the future.