The cryptocurrency world is abuzz with speculation about the potential approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC). ETF Prime podcast host Nate Geraci suggested that S-1 approvals for these ETFs could come within a few weeks, with the process potentially extending up to 2-3 months.
Geraci’s Expectations and Reasons for Optimism
In a post shared on X, Geraci expressed his expectation that the SEC would soon approve the registration statements for spot Ethereum ETFs. He believes the approval process could be expedited due to the precedent set by the swift approval of spot Bitcoin ETFs. He highlighted that the SEC has already done most of the groundwork with previous approvals, implying that the duration of the process might depend on how long the SEC wants to extend it.
Senior ETF analyst at Bloomberg, Eric Balchunas, engaged with Geraci’s post and suggested a potential timeline around July 4, 2024, for the S-1 approval. Geraci agreed with this timeline, noting that the approval could take over a month but might come sooner than expected. This interaction reflects a consensus among experts that the approval process is progressing, albeit slowly.
Detailed Explanation from James Seyffart
Bloomberg analyst James Seyffart provided a detailed explanation of the approval process, emphasizing the distinction between SEC approval and the final launch of the ETFs. He noted that the 19b-4 applications for eight spot Ethereum ETFs were approved on May 23, but the S-1 forms still require approval, which could come weeks or months later. Seyffart stressed that, as seen with the spot Bitcoin ETF, the approvals of the 19b-4 and S-1 forms do not occur simultaneously.
Seyffart also explained the necessity of two-way communication between the SEC and the applicants, noting that this process has just begun. During the spot Bitcoin ETF approval, this interaction took several weeks, indicating a similar timeframe might apply to the spot Ethereum ETFs. Consequently, the actual launch of these ETFs remains uncertain, largely depending on the speed of this communication.
Despite the uncertainty, experts like Geraci and Balchunas remain optimistic about the final approval of the ETFs. They believe the SEC’s previous experience with similar ETF approvals could facilitate the process for spot Ethereum ETFs. Geraci pointed out that the SEC has already overcome the complexities of such approvals, which could accelerate the current process.
