SEC Releases Comments on S1 Forms for Ethereum ETFs Deadline for Response is This Friday

Key Points
The SEC has issued important feedback on the S-1 forms of spot Ethereum ETFs, with a response deadline of Friday.
A prompt response is crucial to prevent delays in the approval of Ethereum ETFs.
If issuers promptly address the SEC’s feedback, full approval of Ethereum ETFs could be granted by July 2.
The US Securities and Exchange Commission (SEC) has provided feedback to issuers of spot Ethereum ETFs regarding their S-1 forms. This feedback is crucial for the progress of these ETFs, which offer investors exposure to Ethereum through a regulated product.
With a deadline set for this Friday, issuers are under pressure to address the SEC’s feedback promptly.
BREAKING NEWS: US SEC PROVIDES FEEDBACK TO SPOT ETHEREUM ETF ISSUERS ON S-1 FORMS; DEADLINE FOR RESPONSE IS THIS FRIDAY
— BSCN Headlines (@BSCNheadlines)
June 19, 2024
SEC Feedback To ETH ETF Issuers
In recent years, there has been a growing interest in spot Ethereum ETFs, providing investors with exposure to Ethereum without the need to directly buy and store the cryptocurrency.
While all eight issuers had their 19b-4 forms approved on May 24, approval from the SEC for the S-1 forms is necessary before trading can commence. These forms contain detailed information about the ETF, including its investment strategy, risks, and management.
The SEC’s feedback typically addresses any concerns or questions they have regarding the information provided, and issuers must respond with clarifications or additional details.
Response Deadline
The SEC has imposed a deadline for issuers to respond to their feedback by Friday. This deadline is crucial as it demonstrates the SEC’s commitment to advancing the review process. Issuers who fail to respond on time may encounter delays in the approval of their ETFs, potentially impacting their launch schedules.
SEC Final Approval By July 2
Senior ETF Analyst Eric Balchunas of Bloomberg recently disclosed that the SEC has issued relatively minor feedback on the S-1 filings and requested responses by Friday. This indicates a strong possibility of the SEC approving these ETFs around July 2.
The SEC has not specified when the S-1 forms will be approved, only stating sometime during the summer. SEC Chair Gary Gensler mentioned that the timeline will largely depend on how quickly issuers address the agency’s feedback.
While the impact of Ethereum ETFs remains uncertain, some analysts speculate that they could attract up to 20% of the inflows seen by Bitcoin ETFs.