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Highlights
- Bloomberg ETF Analyst James Seyffart has shared insight into spot ETH ETF trading timeline
- He said the product, if approved may not start trading immediately
- Market anticipation is building and this clarification is highly needed
The market is almost at a standstill ahead of the potential approval of spot Ethereum ETF approval by the United States Securities and Exchange Commission (SEC). One major controversy that Bloomberg Senior ETF Analyst James Seyffart just addressed is related to the expected launch timeline after approval.
When Will Spot Ethereum ETF Start Trading?
As it stands, the approval odds for the spot Ethereum ETF are way above 75% as SEC staff has informed crypto exchanges of its intention to greenlight the product. In his explanation, Seyffart hinted that approval is different from the actual ETF launch.
He recalled a post he shared earlier detailing the order of approvals featuring 19b-4s and S-1s. With VanEck’s deadline set for May 23, many are wondering if the timeline to start trading is right. In his exposition, Seyffart noted that approving the 19b-4 for the asset manager may come by the deadline. However, approving S-1 might take weeks to months.
Bumping this post. Seeing broad misconceptions that ‘approvals’ mean immediate launches of the #Ethereum ETFs. This isn’t necessarily the case. There will be days (at a minimum), likely at least weeks, and potentially months between approval and launches here https://t.co/ecbgMjLN95
— James Seyffart (@JSeyff) May 21, 2024
In the case of spot Bitcoin ETF approval, the approval of 19b-4 and Form S-1 happened almost concurrently. This might have contributed to the broader misconception in the market at this time. In his submission, Seyffart noted that there will be days at a minimum between SEC’s approvals and the actual launch of the products.
One of the reasons why James Seyffart believes there will be a considerable time gap between approval and launch is because there might be need for bi-directional communication between the regulator and all stakeholders involved. The interaction between the SEC and the applicants just started this week, a trend that took the parties weeks in the case of spot Bitcoin ETF approval.
Getting Ready
While it remains relatively unclear how complicated the interaction between the SEC and spot Ethereum ETF applicants will be, many prospective issuers are getting ready. One major way is in the updating of their applications to take away any clause that might stir controversy with the US SEC.
The markets regulator is perceived to disfavor staking products within the Ethereum ecosystem as a whole. To align with this, prospective issuers like Grayscale Investments and Fidelity Investments have removed this proposal in amended Ethereum ETF filings.
The market is still hopeful for spot Ethereum ETF approvals and the price of ETH has showcased this optimism thus far.
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