SEC Starts Talks with Ethereum ETF Issuers on S-1 Forms

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As a seasoned crypto investor with a keen interest in Ethereum and its related investment vehicles, I find this latest development from the SEC both intriguing and potentially promising. The potential approval of Ethereum ETFs is an exciting prospect for the entire crypto community, as it could lead to increased institutional adoption and liquidity for this leading smart contract platform.

The SEC in the United States is holding talks with prospective Ethereum ETF creators about their registration statements using Form S-1. This action follows the submission of revised 19b-4 forms, but advancements on S-1 applications have been limited so far.

As a seasoned analyst, I’ve had the opportunity to discuss the current state of the Ethereum ETF proposal with a high-ranking executive at the issuing firm. Based on our conversation, it seems the Securities and Exchange Commission’s Division of Investment Management was taken aback by this development. Consequently, the process is in its infancy. However, despite the initial surprise, there remains a sense of optimism that the Ethereum ETF will progress.

To begin trading Ethereum ETFs, the SEC first needs to approve the 19b-4 forms. Following this approval, the effectiveness of the S-1 registration statements is required. Once both steps are completed, trading can commence. It’s common for these forms to undergo several revisions before being granted final approval.

As an analyst, I’ve noticed that there have been substantial advancements in the filing of 19b-4 forms. However, only Fidelity has recently updated their S-1 form. Now that discussions surrounding the S-1s have commenced, it is anticipated that more amendments will ensue.

The Securities and Exchange Commission (SEC) has a significant decision to make today regarding VanEck’s application for an Ethereum exchange-traded fund (ETF). According to Eric Balchunas, ETF analyst at Bloomberg, we can expect a resolution by 4 p.m. Eastern Time. Previous announcements from the SEC on similar matters have occasionally occurred slightly earlier or later in the day.

Despite obtaining 19b-4 form approvals, the completion and approval process for S-1 forms remains time-consuming, potentially causing a minor setback in trading. Lately, BlackRock and Grayscale have submitted their 19b-4 amendments and Ethereum spot ETF-related products.

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2024-05-23 14:28