SEC Moves Closer to Approving Spot Ethereum ETFs with Updated Filings

Several asset managers have taken a crucial step towards launching Spot Ethereum ETFs by filing updated S-1 registration statements with the U.S. Securities and Exchange Commission (SEC), following the SEC's request.

In a bid to streamline the review process, multiple applicants for Spot Ethereum ETFs have updated their S-1 registration statements as requested by the SEC. This significant move marks the final hurdle before these ETF products can enter the market. On Monday, prominent asset managers including VanEck, Grayscale, Fidelity, BlackRock (NYSE:BLK), 21Shares, Franklin Templeton, and Bitwise, submitted their amended S-1 statements, adhering to the SEC’s July 8 deadline and demonstrating their compliance and readiness.

Spot Ethereum ETFs are investment funds that hold Ethereum and trade on stock exchanges, much like traditional stocks or commodities. Although the SEC approved the Spot ETH ETF 19b-4 applications on May 23, the S-1s must still receive final approval before trading can commence. The SEC will now review these amended forms and provide any necessary final adjustments before granting ultimate approval.

Industry experts suggest that the SEC's request for updated filings significantly boosts the likelihood of approval for Spot Ethereum ETF applications. The situation mirrors the approval process for Spot Bitcoin ETFs in January 2024, raising expectations for a favorable outcome. Top analysts forecast that the SEC will approve the updated drafts within two weeks, given that issuers have already completed most of the preparatory work.

Bloomberg analyst Eric Balchunas noted, "First S-1 just rolled in today from VanEck... they already had their fee, so nothing to see here, really; they just putting the ball back in SEC’s court. Expecting the rest today except for Bitwise, who did theirs last week."

Ethereum enthusiasts are optimistic about the potential market impact of Spot ETF listings, anticipating significant institutional inflows. Drawing comparisons with Bitcoin ETFs, ETH holders expect price increases that could offset previous losses. Ethereum currently trades at $2,983, down 20% from the 19b-4 application approvals.

If Ethereum follows a similar pattern to its past performance, it may undergo a brief consolidation period followed by a price surge once Spot ETH ETFs begin trading. This trend was observed between April 12 and May 21, when Ethereum initially dropped, stabilized, and then rose after the SEC approved the 19b-4 filings.