Ethereum ETFs Might Launch in July

Bloomberg analyst Eric Balchunas has forecasted the launch of spot Ether (ETH) exchange-traded funds (ETFs) in the United States. Balchunas anticipates trading to begin in July, with a specific prediction of July 2 as the over/under date for the official debut.

SEC Review and Feedback

Balchunas shared insights into the SEC’s review process, noting that the staff had provided comments on the S-1 filings submitted by issuers. He described these comments as relatively minor, indicating no significant issues. The SEC has requested responses from issuers within a week, which Balchunas interprets as a sign that the ETFs could potentially be approved before the holiday weekend.

Despite the inherent uncertainties in the regulatory process, Balchunas emphasized that this timeline is their best estimate at the moment. This optimistic outlook aligns with SEC Chairman Gary Gensler’s recent testimony to Senator Bill Hagerty. Gensler suggested that he expects the S-1 filings for spot Ethereum ETFs to gain approval by the end of summer, reinforcing the belief that any delays will be short-term.

Political Shifts and Review Delays

Balchunas also highlighted that the delay in the SEC’s feedback was due to the Division of Corporation Finance (Corp Fin) reviewing these filings for the first time. This situation emerged unexpectedly, likely due to a last-minute political shift within the SEC. This shift caught Corp Fin by surprise, causing a backlog in processing the documents.

The timing of how quickly Corp Fin can prioritize and process these filings remains uncertain. However, some observers believe that Ethereum ETFs might not attract as much attention as Bitcoin ETFs. The lack of staking capabilities in Ethereum ETFs is a contributing factor to this expected difference in interest.

SEC’s Stance on Ethereum

SEC Commissioner Hester Peirce, known for her supportive stance on cryptocurrencies, has expressed skepticism regarding the SEC’s treatment of Ethereum. She pointed out that the SEC has historically classified Ethereum as a security, unlike Bitcoin, which is considered a commodity. This classification introduces unique challenges for the approval process of Ethereum ETFs compared to Bitcoin ETFs.

The SEC has made significant strides in the approval process for Ethereum ETFs. On May 23, the SEC approved eight 19b-4 filings, a crucial step towards listing and trading these ETFs. However, trading cannot commence until the S-1 registration statements receive the necessary approvals.

The approval of the 19b-4 forms signifies the SEC’s authorization for exchanges to list the ETFs, but immediate trading is not guaranteed. This progress marks a notable advancement in the journey toward Ethereum ETF approval, a development eagerly awaited by the cryptocurrency community.

The SEC is currently reviewing the S-1 registration statements submitted by Ethereum ETF issuers. These statements provide detailed information about the companies and the specific securities they intend to offer.

As of now, Ethereum (ETH) is trading at approximately $3,562.97, reflecting a 2.5% increase in the last 24 hours. However, it is still down by 3.5% on the weekly timeframe, according to CoinGecko data.