Spot Ether ETF Amendments Due This Week; SEC Approval Underway?

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Issuers of the much-anticipated spot Ether ETF are expected to submit their amended S-1 forms by July 8. Following the resubmission, the US Securities and Exchanges Commission will evaluate the applications and decide whether or not to approve the ETFs.

With the resubmissions in view, anticipation has heightened, with many speculating that the SEC will approve the ETFs next week.

Nate Geraci, President of the ETF Store, thinks the issuers will likely turn in their S-1 filing amendments. Geraci expects the SEC to approve the products within the next two weeks. 

Incoming Spot Ether ETF S-1 Amendments 

On May 23, the SEC approved the 19b-4 forms for issuing eight spot Ethereum ETFs in the US. Afterward, the potential fund issuers submitted their S-1 forms, supposedly the last step before the SEC will allow the ETFs to trade in the US market.

However, following the submissions, the SEC bounced all S-1 forms, asking the issuers to make subtle changes before resubmitting them. 

In an X post, Nate Geraci said he looks forward to how quickly the SEC will process the incoming amendments. While many speculate whether the SEC will reject the fillings, Geraci said the primary focus should be the ETF management fees.

Spot eth ETF S-1 amendments supposedly due tomorrow…

How quickly will SEC turn these around?

Again, main item I’m watching for is fees (which won’t be required w/ these amendments).

Otherwise, assume issuers gearing up for launch in next week or two.

— Nate Geraci (@NateGeraci) July 7, 2024

Issuers like Bitwise turned in their S-1 amendments last week, while others like 21Shares, BlackRock, Fidelity, and Grayscale may submit theirs today. 

After the submissions, the SEC will probably request a few more review rounds; otherwise, the market should expect the ETF launch soon. In his post, Geraci mentioned that issuers are gearing up for the ETF launch in a week or two. 

Expert Opinions on the Future Potential of Spot Ethereum ETFs

The launch of spot Ether ETFs in the US is among the most anticipated events in the crypto industry. Some market analysts are already projecting ambitious numbers post-launch.

In a recent blog, Bitwise’s Chief Investment Officer Matt Hougan said the upcoming spot ETFs will reshape the Ethereum trading and investment landscape. The financial expert predicts that the spot Ethereum ETFs could garner $15 billion in inflows within their first 18 months of trading. 

Hougan’s bullish assertion hinges on several crucial factors. He compared Bitcoin’s market cap with that of Ethereum, anticipating a corresponding fund allocation to the ETFs by investors. 

The Bitwise CIO also weighed the success of the global crypto ETP Market. He expects Ether ETPs’ mainstream acceptance and integration to bolster the projected inflow.

Unlike Hougan, who presented a highly bullish stance, Mechanism Capital’s Andrew Kang shared a more cautious outlook. In a recent X post, Kang said an Ethereum ETF would have a less significant impact unless Ether adopts a more appealing pathway to attract institutional investor interest.

https://t.co/On2KWjAlLx

— Andrew Kang (@Rewkang) June 23, 2024

Meanwhile, Ethereum (ETH) has rebounded slightly after plunging below the $3,000 threshold. Over the last week, Ethereum has lost over 11% of its gains, with a nearly 17% price decline in the past month. This price decline is in tune with a broader market downturn over the past week.