US SEC Begins Talks on Ethereum ETF S-1 Registration: Report

 


The U.S. SEC has reportedly initiated discussions on S-1 registration for Spot Ethereum ETFs, sparking market optimism and triggering a rally in the Ethereum price.

The cryptocurrency market is abuzz with excitement as the U.S. Securities and Exchange Commission (SEC) initiates discussions on the S-1 registration for Ethereum ETFs. The recent discussions over the potential approval of the investment instrument have fueled optimism, causing Ethereum prices and other major cryptocurrencies to rally this week. Notably, the potential approval of an Ethereum ETF by the SEC marks a significant milestone for the crypto industry.

US SEC Engages In Initial Discussions


According to a recent report citing anonymous sources, the SEC has begun conversations regarding S-1 registration statements with potential Ethereum ETF issuers. The report said that a senior member at one issuer hinted the development was just the start. 

In addition, he indicated that the Division of Investment Management was somewhat unprepared for this shift. However, despite the cautious optimism, the source did not expect these early discussions to halt progress toward an Ethereum ETF.

Meanwhile, for Ethereum ETFs to receive approval, the SEC must first approve the 19b-4 forms, as it did in a comprehensive order for Bitcoin ETFs. Once these forms are approved, the S-1 registration statements must become effective before trading can commence. 

Typically, these forms undergo multiple amendments before final approval. Notably, Fidelity has recently filed an amended S-1 form, sparking discussions about the S-1s over more amendments are on the horizon.

Meanwhile, Matrixport co-founder Daniel Yan weighs in on Ethereum ETF approval, outlining three potential scenarios and their impacts. Yan anticipates a sell-on-fact response if only the 19-b4 is approved, a “very bullish” sentiment if both 19-b4 and S-1s are approved, and a “very bearish” outlook if 19-b4 is rejected.

Optimism Surrounding Approval Deadlines


The SEC faces a deadline to approve or deny VanEck’s Ethereum ETF 19b-4 form. Market observers are optimistic that if the SEC approves the ETFs, it will do so simultaneously for multiple issuers, as seen with Bitcoin ETFs. 

Commenting on the development, senior Bloomberg ETF analyst Eric Balchunas said that he expects the SEC to make the announcement around 4 pm ET today. Notably, he has predicted the timeline after comparing the Spot Bitcoin ETF announcement by the SEC, which came out at around 3:45 pm ET.

However, even if the SEC approves the 19b-4 forms, the process of finalizing and making the S-1 forms effective could delay the start of trading. This means that while the 19b-4 approval is a significant step, the market might need to wait longer before Ethereum ETF trading begins.

The anticipation surrounding the potential approval of Ethereum ETFs has already had a positive impact on the crypto market. Ethereum prices have surged, bolstered by the broader optimism that such regulatory advancements bring. The approval of Ethereum ETFs would provide professional investors with more convenient access to the cryptocurrency, potentially leading to increased institutional adoption and further price gains.

Besides, the Bitcoin ETF approval by the U.S. SEC has sent the BTC price to a new high in mid-March, and considering that, the investors are expecting a similar picture with the Ethereum performance. As of writing, the Ethereum price surged over 2.5% and exchanged hands at around $3,830. Recently, it has touched a 24-hour high of $3,839.76, following the report.

Previous Post Next Post