Crypto: Prolonged Wait for Ethereum ETFs as SEC Delays Response

The players in the crypto industry have their eyes fixed on the U.S. SEC, as the wait for the approval of Ethereum ETFs (exchange-traded funds) drags on. Since the submission of the first drafts of S-1 forms on May 31, the issuers of these ETFs are in anticipation, awaiting comments from the SEC. Although this bureaucratic slow pace is frustrating, it is not unusual in the financial world. Let’s explore the details of this situation and its implications for the cryptocurrency market.

An endless wait for SEC comments

The approval process for Ethereum ETFs is at a crucial stage. The issuers, having submitted their S-1 forms, expected to receive comments from the SEC around June 7.

Yet, to date, no response has been received, leaving the issuers in a situation of uncertainty. This wait is not merely a matter of formalities; it also delays the launch of innovative financial products that could attract considerable investments.

Comments from SEC Chairman Gary Gensler on CNBC were not particularly reassuring. He mentioned that the approval of the S-1 forms “would take time,” without providing a specific timeline.

This adds an extra layer of frustration for issuers and potential investors. The question that arises is: how much longer will this situation persist? According to some sources, the S-1 forms might require two more rounds of revisions before being ready.

Preparations for the launch of Ethereum ETFs

Despite the uncertainty, issuers are actively preparing for the launch of their Ethereum ETFs. These preparations are essential to ensure that, once SEC approval is received, the products can be swiftly brought to market.

The S-1 form represents the second step in the approval process, the first being the approval of the 19b-4 forms, obtained on May 23.

The draft filings also reveal some interesting details about the future Ethereum ETFs. For example, BlackRock plans to launch its ETF with a starting capital of $10 million, while Franklin Templeton plans to start with fees of 0.19%.

These figures show the scale of preparations and the commitment of large financial institutions to this new product.

The big question is whether Ethereum ETFs can replicate the success of Bitcoin ETFs. Since their launch, Bitcoin ETFs have attracted substantial investment flows, and expectations are high for Ethereum ETFs.

Jag Kooner, head of derivatives at Bitfinex, estimates that these new products could capture around 10 to 20% of the flows going to Bitcoin ETFs. This estimate, although cautious, underscores the significant potential of Ethereum ETFs.

However, several factors could influence this success. One of them is how the SEC handles the approval process and the associated timelines. The longer the wait, the more impatient investors may become, seeking alternatives elsewhere. Moreover, market conditions and the price evolution of the crypto Ethereum will also play a crucial role in attracting investments.

The coming months will be crucial to observe how this situation evolves and what impact it will have on the broader cryptocurrency market. The crypto industry, always dynamic and full of surprises, undoubtedly reserves many more interesting developments for us.