Bloomberg analyst Eric Balchunas has changed the expected deadline for the launch of Ethereum ETFs in the US. This development comes on the heels of the SEC’s comments regarding the second round of S-1 Forms filings.
S-1 Forms Receive Delayed Response From SEC – Details
In May, the Securities and Exchange Commission abruptly approved 19b-4 filings from eight potential entities for an Ethereum Spot ETF, providing the first step toward eventually filing such ETFs. In accordance with US regulations, the Commission is also expected to approve S-1 forms for proposed ETFs before they begin trading. To clarify, S-1 forms contain information about the ETF’s investment objectives, strategies, risks, charges, etc.
After the initial filing of all draft Forms S-1 on May 31, the SEC quickly responded with comments described as “very light” and ordered all issuers to deliver the requested amendments within a week.
Based on the speed of work, Eric Balchunas assumed that the committee would quickly approve these models and choose July 2 as the potential launch date for the spot ether ETF. However, the SEC responded significantly late in its second round of comments, although the requests were also described as “minor amendments.”
In the wake of this development and the fast-approaching Thanksgiving holiday in the United States that will not allow for much work to be done next week, Balchunas said: pridect Work on S-1 forms will resume on July 8, and approval will come shortly after.
Unfortunately, I think we’ll have to postpone our forecast until after the holiday. It seems the SEC took extra time to get back to people this week (although with minor adjustments again) and from what I’ve heard, next week is over because the holiday = July 8th, and the process resumes and then soon they’ll be releasing… https://t.co/0ZQR7yiBLt
– Eric Balchunas (@EricBalchunas) June 28, 2024
It is worth noting that, unlike Forms 19b-4, Forms S-1 do not have a specific deadline as approval is contingent solely on the SEC’s satisfaction with the terms proposed by the issuers. Earlier in June, SEC Chairman Gary Gensler said the process could “take some time,” saying approval would depend largely on how applicants respond to the commission’s comments.
Ethereum ETFs tend to generate $1 billion in inflows quickly
In other news, investors and analysts continue to remain optimistic about the potential performance of Ethereum Spot ETFs when they eventually begin trading. in Share X On June 28, Charles Yu, Vice President of Research at Galaxy Research, backed these funds to receive at least 20-50% of the demand seen in Bitcoin counterparts.
With total Bitcoin Spot ETF inflows estimated at around $15 billion, Yu expects Ethereum ETFs to record $1 billion in monthly inflows within the first five months of trading. Additionally, Charles Yu expects Ethereum to show higher price sensitivity to these flows due to various reasons including lower net inflation and lower supply on exchanges.
Featured image from Space.com, chart from Tradingview