Despite the anticipation in the cryptocurrency market, Bloomberg ETF analyst Eric Balchunas is tempering expectations regarding the launch of US spot Ethereum ETFs. Balchunas recently commented on the possibility of a mid-June launch, calling it a “long shot.” However, he did acknowledge that there is a “legit possibility” of spot Ethereum ETFs hitting the market by the end of June.
Balchunas’ predictions are closely tied to the timing of issuers’ S-1 statements. He pointed out that BlackRock’s recent S-1 amendment did not include key information like fees, indicating that it is close to the final version. On the other hand, Grayscale updated its S-3 amendment to explicitly prohibit staking, a critical step before the fund can launch for trading.
There is speculation within the industry about the Securities and Exchange Commission’s (SEC) motivations for approving the ETFs. Balchunas suggested that the SEC may have already met its political goals by not rejecting the proposals, leading to a lack of urgency in approving the launch. Other prominent figures like Ark Invest’s Cathie Wood and Coinbase’s David Han have echoed similar sentiments, claiming that the SEC’s decision was politically driven.
The SEC has requested draft S-1 filings from other applicants by May 31, with the first round of comments expected to follow. Balchunas noted that all ETH issuers have submitted S-1 or S-3 registration statements, but only VanEck, BlackRock, and Grayscale have made amendments since the initial approvals on May 23. Fellow Bloomberg analyst James Seyffart predicts that the SEC’s approval process for the S-1 statements could take weeks or even months.
Despite the industry’s eagerness for the launch of US spot Ethereum ETFs, uncertainty still looms over the exact timeline. While there is a possibility of a June launch, the actual date remains unclear due to regulatory processes and potential political considerations. Investors and crypto enthusiasts will need to exercise patience as they wait for further developments in the ETF approval saga.