The Potential Launch of US Spot Ethereum ETFs in June

As the cryptocurrency market continues to evolve, the potential launch of US spot Ethereum ETFs is generating a significant amount of buzz. Bloomberg ETF analyst Eric Balchunas recently stated that there is a “legit possibility” that these ETFs could be launched by the end of June. While an earlier mid-June launch is considered a long shot, Balchunas believes that the latest date for the launch would be July 4.

Balchunas’ predictions are heavily influenced by the timing of issuers’ S-1 statements. He mentioned BlackRock’s May 29 S-1 amendment, which lacked essential information such as fees, making it a “next to final version.” Additionally, Grayscale submitted an S-3 amendment on May 30, updating the fund to explicitly prohibit staking. These amendments are crucial steps before the ETFs can be launched for trading.

Balchunas also pointed out the SEC’s supposed political motivations for the launch of these funds. He argued that the SEC’s initial approvals satisfied political needs, stating that there is no real reason to rush the process. This sentiment was echoed by industry members like Ark Invest CEO and CIO Cathie Wood and Coinbase institutional research analyst David Han, who suggested that the SEC approved the funds for political reasons.

The SEC has requested other applicants to submit draft S-1 filings by May 31, after which the SEC will issue the first round of comments. Each applicant will then make further amendments as needed. As of now, all ETH issuers have submitted S-1 or S-3 registration statements, with only VanEck joining BlackRock and Grayscale in submitting amendments post the SEC’s initial approvals on May 23. Balchunas’ colleague, James Seyffart, believes that the SEC will take weeks or even months to approve S-1 statements.

The launch of US spot Ethereum ETFs in June is surrounded by anticipation and speculation. While there are several crucial steps and amendments that need to be made before the launch can happen, industry experts are closely monitoring the situation. The SEC’s political motivations and timing play a significant role in shaping the outcome of this highly anticipated event.