New Ethereum ETFs Could Launch Mid-June
Exciting news for crypto investors as newly-approved spot Ethereum exchange-traded funds (ETFs) are on the horizon. With successful 19b-4 filings for spot Ether ETFs completed, allowing them to be listed on exchanges, the next step is to secure approved S-1 registration statements before trading can begin.
Predictions on Approval Timeline
Bloomberg ETF analyst James Seyffart anticipates that the S-1 approvals for these ETFs could be granted in the coming weeks, with a potential launch by mid-June. This process could take up to five months, but there is optimism for a quicker timeline.
- Eric Balchunas also shares this sentiment, suggesting the possibility of a mid-June launch.
- This accelerated timeline could be facilitated by a single round of comments on the S-1 amendments, similar to the process for spot Bitcoin ETF applicants.
VanEck and S-1 Filings
VanEck wasted no time after the 19b-4 filings approval and promptly submitted its amended S-1. Other applicants are expected to follow suit shortly. However, there is a chance that a challenge could arise in the next 10 days from one of the SEC Commissioners.
- Joe Carlasare, a digital asset lawyer, believes that passing through the SEC’s trading and markets division indicates a lack of opposition from the Commissioners, reducing the likelihood of a challenge.
- Market expectations are high for spot Ether ETFs, with predictions of attracting significant flows in the range of 10-20% compared to spot Bitcoin ETFs.
Grayscale Ethereum Trust Concerns
There are growing concerns about potential outflows from the Grayscale Ethereum Trust as investors may shift their holdings to spot Ether ETFs, reflecting the outflows seen with the conversion of Grayscale’s Bitcoin investment product.
- The Grayscale Ethereum Trust currently holds over $11.3 billion in assets, raising apprehension about potential outflows.
- On May 23, regulatory approvals were granted to various ETF issuers, with Hashdex being the exception that did not receive approval on that specific day.
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