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The cryptocurrency world is buzzing 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 arrive within a few weeks, possibly extending up to 2-3 months.
Geraci’s Expectations and Reasons for Optimism
Geraci stated in a post on X that he expects the SEC to approve the registration statements for spot Ethereum ETFs soon. He believes the approval process could be expedited due to the precedent set by the swift approval of spot Bitcoin ETFs. He emphasized that the SEC has already done most of the groundwork with previous approvals and implied that it might just be a matter of how long the SEC wants to extend the process.
Eric Balchunas, a senior ETF analyst at Bloomberg, engaged with Geraci’s post, suggesting a potential timeline around July 4, 2024, for the S-1 approval. Geraci agreed with this timeline, noting that the approval could take more than 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, highlighting the distinction between SEC approval and the final launch of ETFs. He noted that the 19b-4 applications for eight spot Ethereum ETFs were approved on May 23, while the S-1 forms still need approval, which could come weeks or months later. Seyffart emphasized 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 applicants, noting that this process has just begun. During the spot Bitcoin ETF approval, this interaction took several weeks, indicating a similar timeline could apply to 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 expedite the current process.
