Bloomberg ETF analyst Eric Balchunas said 30th of May that US spot Ethereum ETFs could launch in June amid updated BlackRock and Grayscale filings.
Balchunas said there is a “legitimate possibility” that Ethereum ETFs will be launched by the end of June. He added that an earlier launch in mid-June was a “long shot.”
Balchunas said the latest date he expects the products to launch is July 4.
Balchunas’ expectations are affected by the timing of issuers’ S-1 statements. He commented on BlackRock’s May 29 S-1 amendment, which he said omitted compensation and other key details – making it a “nearly final version.”
Grayscale also filed an S-3 amendment for its fund on May 30, updating the fund to reflect a clear ban on staking.
Both statements mark one of the final steps required before the funds can be traded.
Politics are at play
Balchunas’ expectations for a launch date are partly related to the SEC’s supposed political motivations for the funds.
Balchunas argued that the SEC’s initial approvals met political needs, writing:
“…The political goal of not appearing anti-crypto has already been achieved by simply not rejecting it [the ETFs]. There is no real reason to rush.”
Other industry members, such as Ark Invest CEO and CIO Cathie Wood and Coinbase institutional research analyst David Han, have similarly argued that the SEC approved the funds for political reasons.
More S-1 statements are coming in
The Block reported that the SEC has asked other filers to submit draft S-1 filings by May 31, after which the SEC will issue its first round of comments.
Each applicant will then submit further changes as necessary.
At the time of writing, all ETH issuers have filed S-1 or S-3 registration statements. However, aside from BlackRock and Grayscale, only VanEck has filed amendments since the SEC granted initial approval for ETFs with exchange rules changes on May 23.
Balchunas’ fellow Bloomberg ETF analyst James Seyffart thinks it will take weeks or months for the SEC to approve S-1 statements.
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Mike Dalton
Before switching to crypto writing in 2018, Mike studied library and information science. He currently resides on the west coast of Canada.
Assad Jafri
A passionate journalist since Yemen’s Arab Spring in 2011, AJ has honed his skills globally for more than a decade. Specialized in financial journalism, he now focuses on crypto reporting.