The Block cited sources familiar with the matter, reporting that the issuer planning to launch an Ethereum spot ETF received comments from the U.S. Securities and Exchange Commission (SEC) on its S-1 filing last week. The issuer is required to make modifications to these documents and submit them by Friday.
According to Zombit’s previous report, the 19b-4 filing for the Ethereum ETF was approved in May, but they are still waiting for the S-1 filing to become effective before trading can begin. Currently, these documents are being modified and resubmitted to the SEC for further review until the SEC deems them ready.
A source familiar with one issuer said the recent round of comments was “reasonable,” and they expect approval soon. Another source from an issuer described these comments as requiring only minor adjustments.
“I anticipate you’ll see people submit the paperwork quickly this week, and then we’ll see how many more rounds of changes are needed.”
Bloomberg’s Senior ETF Analyst Eric Balchunas posted on Twitter claiming he heard similar comments about the progress of the S-1 filing and adjusted his prediction for the launch date of these products to July 2. He noted that this is just a best guess.
The SEC has not explicitly stated when they will approve the S-1 form, but SEC Chairman Gary Gensler has hinted that it may happen at some point this summer. In a later interview, he added that the approval timeline will largely depend on how quickly issuers respond to institutional feedback.
It is currently unclear what impact an Ethereum ETF listing could have, but some analysts predict it could attract around 20% of the inflow of funds that a Bitcoin ETF might attract.