The cryptocurrency community is still waiting on S-1 permission to start trading Ethereum ETFs, even though the US Securities and Exchange Commission (SEC) approved a spot Ethereum ETF. Some remarks are now expected this week, according to a person who is in contact with the SEC. Analyst Nate Geraci stated in a post on X that the regulatory body will be providing remarks to at least one of the several potential issuers that submitted an application this week.
https://x.com/NateGeraci/status/1800498130905157988
Spot ETH ETF regulatory delays and issuer expectations
Notably, spot Ethereum ETF issuers had expected a news from the regulatory body about the progress of their application ever since the May 31 deadline for submitting the initial draft of S-1 registrations passed. Nothing concrete has emerged from the Gary Gensler-led inquiry thus far.
It’s interesting to note that as of June 7, issuers felt confident that the SEC would offer feedback on the drafts. Nonetheless, two of the issuers vehemently declared that they had no communication from the SEC. During a recent interview on CNBC, SEC Chairman Gary Gensler provided only vague information.
Some issuers withdrew from the race as a result of the back and forth between the SEC before approving the 19b-4. Among the notable ones to leave was Cathie Wood’s Ark Invest. The asset management company eventually withdrew, even though it had filed paperwork with the SEC in collaboration with 21Shares to become an Ethereum ETF issuer.
In a formal statement, Ark Invest stated that it still has faith in Ethereum’s “transformative potential and long-term value.” Ark, however, has decided to give up on creating an Ether ETF.
Stakeholders’ concerns about spot Ethereum ETF
While issuers are waiting for the regulatory body to communicate clearly, some stakeholders are having second thoughts about the possibility of the spot Ethereum ETF product. Global banking giant JPMorgan thinks that a significantly less percentage of inflows than anticipated may be drawn to these products.
Nonetheless, experts are upbeat that the product would probably do well in the cryptocurrency market if the SEC approves it.
