Ethereum ETF Issuers Must Submit Draft S-1 Forms Today

According to sources familiar with the matter, the SEC has ordered potential issuers to file amended S-1 forms by Friday, May 31.

This follows the approval of Forms 19b-4 on May 23, marking an important milestone in the process.

Spot ethereum moves forward with ETF approval

The recent approval of Forms 19b-4 marked a major milestone, achieved thanks to a last-minute change of direction by the SEC. Consequently, issuers had not prepared their S-1 forms in advance. Despite this, progress is being made and the SEC is now actively working with issuers to finalize these forms.

Sources familiar with the situation reportedly confirmed that the SEC requested the draft S-1 filings today, Friday. Following this presentation, the agency will provide its first round of comments, which will lead to further amendments. Launching an ethereum ETF requires SEC approval of Forms 19b-4 and S-1, which typically undergo several reviews before final approval.

So far, VanEck filed an amended Form S-1 on the day the ETFs were approved. BlackRock followed suit on May 30, detailing an initial $10 million investment for its ETF.

While the details of the initial investments are relatively simple, more time may be needed to address other aspects of the forms. The S-1 forms are expected to go through at least two more rounds of drafts before they are finalized.

Mixed feeling about delays

Eric Balchunas previously noted that finalizing S-1 registration statements could take longer, which could delay the launch of Ether spot ETFs. “I don't know how fast the fast track is, but it's probably going to be a crazy fight for the next few days, maybe even weeks; it depends on S-1,” he said.

Despite potential delays, JPMorgan analysts remain optimistic and anticipate Ether ETF spot trading to begin well before November. They perceive ETF approval and the broader crypto landscape to be increasingly political ahead of the 2024 US presidential election.

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JPM: “Issuers' registration statements remain under review by the SEC. As such, there is no expected date for when these ETFs will begin trading.
We note that Galaxy analysts anticipate that the S-1s will be finalized and marketing could begin in July or August 2024. We note this…

— matthew sigel, recovering CFA (@matthew_sigel) twitter.com/matthew_sigel/status/1793964303483060711?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>May 24, 2024

Split Capital co-founder Zaheer Ebtikar noted that the unexpected approval caught many off guard and that an immediate launch would have led to more volatile price action. He noted that the delay allows traders to anticipate and prepare for possible entries.

Brian Rudick, research analyst at GSR, added that the delay, while not having a huge impact, is a marginal positive that could attract early inflows and benefit the price of eth.

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