As Bloomberg ETF analyst Eric Balchunas discussed on May 30, there is a buzz surrounding the potential launch of US spot Ethereum ETFs in June. Balchunas believes that while a mid-June launch may be a long shot, there is a legitimate possibility for these ETFs to hit the market by the end of June. He pointed out that the latest expected date for the launch would be July 4, citing the timing of issuers’ S-1 statements as a major factor influencing his predictions.
Balchunas highlighted the significance of recent updates from major players like BlackRock and Grayscale. He noted that BlackRock’s May 29 S-1 amendment lacked crucial information such as fees, indicating that it was close to being the final version. Grayscale also made moves by submitting an S-3 amendment on May 30, explicitly stating a ban on staking within the fund. These updates are crucial steps towards the ETFs becoming available for trading.
Balchunas speculated on the Securities and Exchange Commission’s (SEC) role in the approval process, suggesting that political considerations might be at play. He argued that the SEC’s initial greenlights for the ETFs may have been driven by political motives, with the agency wanting to avoid appearing anti-crypto. This perspective was echoed by industry figures like Ark Invest’s Cathie Wood and Coinbase’s David Han, who also hinted at the SEC’s underlying political considerations.
The SEC’s involvement in the ETF approval process was further highlighted by a report from The Block, revealing that the agency had asked additional applicants to submit draft S-1 filings by May 31. Following this deadline, the SEC would issue comments, and applicants would need to make further amendments based on the feedback received. While all Ethereum issuers had filed S-1 or S-3 statements, only BlackRock, Grayscale, and VanEck had submitted amendments post the SEC’s initial rule changes approval on May 23.
Balchunas’ colleague, James Seyffart, expressed his belief that the SEC could take several weeks or even months to approve the S-1 statements, indicating a potentially prolonged waiting period for the ETFs to launch. Despite the eagerness in the market for US spot Ethereum ETFs, the regulatory landscape and political factors could delay the process, emphasizing the importance of monitoring updates from key issuers and regulatory bodies.
