ETH

Ethereum Spot ETF Might Launch as Early as Mid June - Bloomberg Analyst

by BSCN

May 24, 2024

The SEC recently approved eight 19b-4 filings, but these funds still need to pass another scrutiny stage for the S-1 documents to be reviewed.

Newly-approved spot Ethereum exchange-traded funds (ETFs) could potentially hit the market by mid-June, according to Bloomberg ETF analyst Eric Balchunas.

The imp part is over. Now just logistics. My guess is there’s only one round of comments on the S-1s. And during btc one round took two weeks ish. So I this mid June is certainly poss. Just a guess tho. We will see.
— Eric Balchunas (@EricBalchunas) May 23, 2024

The anticipated launch follows the approval of several 19b-4 filings and the subsequent filing of amended S-1 forms by ETF issuers like VanEck. VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock have received approval from the regulator for their Nasdaq, NYSE Arca, and Cboe BZX listings.

However, there is a potential hurdle. Gabriel Shapiro, general counsel at Delphi Labs, highlighted that the SEC’s approval was made by its Division of Trading and Markets under "delegated authority." This means one of the five SEC Commissioners could challenge the decision within 10 days.

Meanwhile, ETF analyst James Seyffart noted that decisions made with delegated authority are common and that requesting a review would likely not change the outcome.

Market Impact and Expectations

The ETFs could attract a significant amount of institutional capital if they are approved for trading. According to Standard Chartered, inflows will reach $45 billion in the first year.

Bloomberg Analyst James Seyffart predicts that spot Ether ETFs could attract about 20% of the flows seen by spot Bitcoin ETFs. Balchunas offers a more conservative estimate of 10-15%.

Since the launch of spot Bitcoin ETFs around four and a half months ago, they have accumulated $13.3 billion in net inflows, according to SoSoValue Crypto. Even capturing a fraction of this market could signify substantial inflows for Ethereum ETFs.

The SEC approved eight of the 19b-4 filings submitted after weeks of anticipation. However, these funds still need to pass another stage of scrutiny for the S-1 documents to be reviewed. This additional step is crucial for the final launch of the ETFs.

VanEck already filed its amended S-1 after having its 19b-4 approved, and other applicants are expected to follow suit soon.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].