Ethereum ETFs Might Take a Few Weeks to Several Months to Go Live After Approval

Today, eight Ethereum spot ETFs were approved in an omnibus order, but it may take some time before they go live. While the SEC approved the 19b-4 forms for these ETFs, including offerings from BlackRock, Fidelity, and Grayscale, their S-1 registration statements need to become effective before trading can begin.

Source: www.coinrapor.com

In contrast to Bitcoin ETFs, where the S-1 forms were prepared ahead of the 19b-4 approvals, the situation for Ethereum ETFs is different. The SEC had not been in communication with issuers until earlier this week, leading to speculation about potential political motives for this change. Although issuers swiftly completed the 19b-4 forms before the VanEck ETF deadline today, there hasn't been significant progress with the S-1 forms.

According to a source familiar with the process, the S-1 forms require more work, and it could take weeks to resolve any issues, contingent on the SEC's responsiveness. Consequently, exchanges and issuers haven't initiated discussions about launching the products. This aligns with assessments from industry experts. ETF analyst Eric Balchunas commented in an interview with The Block prior to the 19b-4 approvals, stating, I don't know how fast the fast track is, but it's going to be probably a mad scramble for the next couple of days, maybe even weeks — depending on the S-1.

Galaxy Digital forecasts that spot Ethereum ETFs could be listed on exchanges in July or August. The firm notes that these ETFs carry significantly greater risk profiles compared to spot Bitcoin ETFs, which might prolong regulators' decision-making on the funds.

After Thursday's order, it's anticipated that the SEC will begin providing feedback to issuers regarding their S-1 forms and collaborate with them to ensure readiness. Trading can commence only after this process has occurred and exchanges are prepared. Although Ethereum ETFs have received approval, they may not commence trading for a few weeks, with the timeline potentially varying depending on the agency's priorities.

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