Markets
Discussions begin on registration of Ethereum ETF S-1: SEC stimulates market optimism
The SEC’s upcoming ruling on the Ethereum ETF is monumental. Approval would mean easier access, greater legitimacy, greater liquidity of institutional funds and clearer regulations. Even if rejected, mere consideration signals a shift toward eventual acceptance. It’s not a question of ‘if’, but ‘when’.
Let’s hope ‘when’ is today.
In a recent development, the US SEC has begun discussions on S-1 filing for Spot Ethereum ETFs, sparking market optimism and triggering a rally in Ethereum prices.
Insider information
According to inside sources, the SEC has begun talks with potential Ethereum ETF issuers regarding S-1 registration statements. Although still at an early stage, this measure marks a promising step towards regulatory approval, albeit with cautious optimism.
Journalist Eleanor Terrett revealed that discussions between SEC staff and Ether ETF issuers ended with recognition of ongoing work. Speculation suggests that if the SEC approves Forms 19b-4 on May 23, S-1 collaboration could occur in the coming weeks or months.
Main obstacles ahead
For Ethereum ETFs to gain SEC approval, Forms 19b-4 must be approved, similar to the process for Bitcoin ETFs. Furthermore, the effectiveness of S-1 registration statements is crucial before trading begins. Recent changes presented by Fidelity highlight the detailed review process underway.
Predicting the results
Market watchers are closely watching the SEC’s deadline to approve or deny VanEck’s decision Ethereum ETF Form 19b-4. Speculation about the potential outcomes is high, with Matrixport co-founder Daniel Yan predicting three scenarios. Approval of 19b-4 alone could trigger a selloff. Approval of 19b-4 and S-1 would be “too optimistic,” while rejection of 19b-4 would be “too pessimistic.”
Bloomberg ETF senior analyst Eric Balchunas predicts an announcement around 4pm ET today, similar to the timing of the Spot Bitcoin ETF announcement. However, even with approval, the finalization of S-1 forms could delay negotiations, tempering immediate market expectations.
Market reactions
Meanwhile, rumors about the approval of the Ethereum ETF excited the crypto market, sending ETH prices higher. This could attract significant institutional investment and drive up prices, similar to the impact of the Bitcoin ETF approvals in January. Following the news, Ethereum prices rose more than 2.5%, reaching a 24-hour high of $3,839.76 and trading around $3,830. The anticipation of regulatory progress reflects investor confidence in Ethereum’s potential, echoing the positive response to the approval of the Bitcoin ETF.
Also check out: Decoding the possibility of Ethereum (ETH) price reaching a new ATH after spot ETF approval!
Will the SEC approve ETH ETFs under political pressure or does it have a plan B to delay them? Only time will tell.