Bloomberg Analyst Extends Deadline For Launch

Bloomberg analyst Eric Balchunas has shifted his projected deadline for the launch of Ethereum Spot ETFs in the United States. This development comes following comments by the US Securities and Exchange Commission on the second round of S-1 forms submission.

S-1 Forms Receive Late Response From SEC – Details

In May, the SEC abruptly approved the 19b-4 filings from eight prospective issuers of the Ethereum spot ETF, clearing the first step for the eventual introduction of these investment funds. In line with US regulations, the Commission is also expected to greenlight the S-1 forms of these proposed ETFs before trading can commence. For context, the S-1 forms contain information on an ETF’s investment objectives, strategies, risks, fees, etc. 

Following the initial submission of all draft S-1 forms on May 31, the SEC responded quickly with comments described as “pretty light” with all issuers ordered to turn in the requested amendments within a week. 

Based on the speed of operation, Eric Balchunas postulated the Commission to quickly clear the approval of these forms selecting July 2 as a potential launch date of the Ether spot ETF. However, the SEC has notably responded late on its second round of comments although with requests also described as “light tweaks”. 

Following this development and the fast-approaching US Thanksgiving holiday which will allow little work to be done next week, Balchunas predicts work on the S-1 forms to resume on July 8, and approval to come shortly after.

Unfort think we gonna have to push back our over/under till after holiday. Sounds like SEC took extra time to get back to ppl this wk (altho again very light tweaks) and from what I hear next wk is dead bc holiday = July 8th the process resumes and soon after that they’ll launch… https://t.co/0ZQR7yiBLt

— Eric Balchunas (@EricBalchunas) June 28, 2024

It is worth stating that, unlike the 19b-4 forms, the S-1 forms have no fixed deadline with approval solely hinging on the SEC’s satisfaction with the issuers’ proposed terms.  Earlier in June, the SEC Chairman Gary Gensler had stated this process could “take some time” saying that approval will largely depend on the applicants’  responsiveness to the Commission’s comments.

Ethereum Spot ETFs Tipped To Quickly Hit $1 Billion Inflows 

In other news, investors and analysts have continued to remain bullish on the potential performance of the Ethereum Spot ETFs when they eventually commence trading. In an X post on June 28, Charles Yu, Vice President of Research at Galaxy Research has backed these funds to receive at least 20-50% of the demand seen in Bitcoin counterparts.

With total Bitcoin Spot ETF inflows estimated at $15 billion, Yu predicts the Ethereum ETFs to record $1 billion in monthly flows for the first 5 months of trading. In addition, Charles Yu expects Ethereum to show a higher price sensitivity to these inflows due to various reasons including a lower net inflation and lower supply percentage on exchanges.

Featured image from Space.com, chart from Tradingview