The launch of spot Ethereum ETFs in the US has been eagerly anticipated, with experts speculating that it could happen as early as June. Bloomberg ETF analyst Eric Balchunas has indicated that there is a legitimate possibility of spot Ethereum ETFs launching by the end of June. However, he also mentioned that an earlier mid-June launch is unlikely, with July 4 being the latest expected date for the products to go live.
Balchunas’ timeline for the launch of Ethereum ETFs is based on the timing of issuers’ S-1 statements. He pointed out that BlackRock’s recent S-1 amendment did not include crucial information like fees, signaling that it is a near-final version. Grayscale also updated its fund with an S-3 amendment, specifically prohibiting staking activities. These filings are seen as essential steps before the ETFs can be traded on the market.
The delay in launching Ethereum ETFs may also be attributed to the SEC’s political motivations. Balchunas suggested that the SEC’s initial approvals satisfied political objectives, as rejecting the ETFs outright would have made them appear anti-crypto. As a result, there may not be a pressing need for the SEC to expedite the approval process.
Industry Perspectives
Industry figures like Ark Invest CEO Cathie Wood and Coinbase analyst David Han have echoed similar sentiments about the SEC’s political considerations. They believe that the SEC’s approval of the ETFs was primarily driven by political factors rather than regulatory criteria. The SEC has requested draft S-1 filings from other applicants by May 31, after which it will issue comments and request further amendments if necessary.
Despite most ETH issuers submitting registration statements, only BlackRock, Grayscale, and VanEck have made amendments following the SEC’s initial approvals for ETF rule changes. Balchunas’ colleague James Seyffart anticipates that the SEC will take several weeks or even months to approve the S-1 statements, further prolonging the launch timeline for Ethereum ETFs.
The launch of spot Ethereum ETFs in the US faces delays due to regulatory processes, issuer filings, and potential political considerations by the SEC. While industry experts remain hopeful about the eventual approval of these ETFs, the timeline for their launch remains uncertain. Investors and stakeholders will need to closely monitor developments in the coming weeks to determine when Ethereum ETFs will finally hit the market.