Why are Gensler and the SEC still silent regarding Ethereum ETF approvals? | Credit: Drew Angerer/Getty Images
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Key Takeaways
The long-awaited approval of Ethereum ETFs seems close at hand.
Analyst predictions highlight growing interest from institutional investors in Ethereum.
Experts suggest Ethereum could outperform Bitcoin if the ETF gets approved.
The cryptocurrency market should be experiencing renewed enthusiasm and an uptick in prices, largely due to theanticipated launch of spot Ethereum ETFs. Having submitted their latest S-1 registration forms, prospective issuers are awaiting feedback from the US Securities and Exchange Commission (SEC).
However, while the most recent filings suggest a lighter touch in theSEC’s final round of feedback, indicating a potential wrap-up of the review process, the lack of definitive communication from the SEC has left the final approval date ambiguous and market experts frustrated. This silence from the regulatory body has only intensified the uncertainty surrounding the approval of Ethereum ETFs, with stakeholders voicing their concerns over the SEC’s lack of clear guidance.
SEC Request for More Information Stalls Ethereum ETF Launch
In May, the approval of Ethereum ETFs was seemingly on the horizon, with expert predictions pointing to a potential approval date of July 2. This followed certain comments from SEC Chairman Gary Gensler about the likelihood of approving S-1 forms for spot exchange-traded funds focused on major altcoins this summer.
However, on May 20, the SEC suddenly requested issuers update their 19b-4 forms, necessary for trading new ETFs on stock exchanges. This request was part of the process leading up to some issuers’ pending final deadlines.
ETH ETF APPROVAL SUMMARY
– Form 19B-4 approved for 8 issuers, including BlackRock and Fidelity. S-1 missing. Could take weeks to months before ETH ETFs actually trade.
– Huge win for ETH as it means SEC deems it a commodity, which means less regulatory uncertainty for the…
The development came shortly after Bloomberg’s ETF analyst Eric Balchunas indicated that there was speculation about the SEC potentially revising its stance on the approvals of these ETFs.
Balchunas then reported that the SEC requested the 19b-4 forms—essential for the trading of new ETFs on exchanges—needed to be submitted by 10 AM. He also suggested that these forms could be approved as soon as May 22. The final step for the Ethereum ETFs to become operational involves the SEC’s approval of the 19b-4 forms and the S-1 registration statements. There isn’t a confirmed date for when the S-1 might go effective; however, in the case of spot Bitcoin ETFs, the S-1 statements were accepted just hours after the 19b-4 approvals were granted.
The Eethness Stakes is pretty good. Nice look at all the entrants dealing w this fire drill. Hearing the SEC wants revised 19b-4s returned to them by 10am tmrw morning (based on a bunch of comments they just received today) for likely approval as soon as Wed. https://t.co/rmkSfnX45W
Despite market expectations that the SEC could approve Ether ETFs during the holiday week of July 4, the SEC has extended the deadline for applicants. They now had until Monday, July 8, to submit updated documentation, indicating a delay in the anticipated approval timeline.
This process has involved back-and-forth revisions with the SEC, taking weeks at a time. However, with the final S-1 submissions on July 8, issuers have a growing sense of optimism that the process might be nearing its end. Now, all eyes are on the SEC, with Ethereum ETF hopefuls eagerly awaiting the final green light to bring their products to market.
Yeah, rn it’s all quiet on the Western Front re eth ETFs. Nada from SEC this week. Unclear why they taking such sweet ass time. Every issuer is ready. Docs are ready. It’s like a rain delay in baseball. Gotta just wait. Maybe things will move fast next week. We’ll see… https://t.co/o1ZSdIf1nE
In a recent interview, Bloomberg analyst James Seyffart discussed the evolving outlook on Ethereum ETFs, ranging from their potential market debut to their expected performance. He shared his journey of fluctuating opinions about the approval of Ethereum ETFs, initially believing in their imminent approval. “Last time I was on with you, I thought they were going to get approved,” Seyffart stated.
However, he later shifted perspectives due to the unpredictable nature of the regulatory landscape, thinking, “All indications were these things aren’t going to get approved.” Yet, the situation took a surprising turn due to favorable political developments, including Trump’s supportive stance on crypto and encouraging legislative actions. “On Friday, people were convinced it wasn’t happening,” Seyffart recalled, “but by Monday, the political winds had shifted so dramatically it seemed possible again.” This rapid change highlighted the unpredictable interplay between politics and financial regulations, significantly altering the outlook for Ethereum ETFs.
“Welcome to Spot ETH ETF Approval Week”: Analyst Predicts Fast Track Launch
Nate Geraci, another ETF analyst, also viewed the recent developments positively, noting that final approval seems imminent. The approval of these ETFs would mark a significant milestone for the cryptocurrency market, potentially ushering in new investment opportunities and boosting the broader adoption of digital assets.
Geraci expressed his expectations through a post on social media, stirring significant interest and speculation among investors and enthusiasts alike.
Welcome to spot eth ETF approval week…
I’m calling it.
Don’t know anything specific, just can’t come up w/ good reason for any further delay at this point.
Recently, Geraci highlighted the sustained interest from institutional investors and financial advisors in cryptocurrency assets, particularly Ethereum. He pointed out that, despite prevailing market conditions, the demand for Ethereum has the potential to replicate the substantial success experienced by Bitcoin ETFs, indicating a strong and growing institutional appetite for crypto investments.
The potential approval of an Ethereum ETF could significantly enhance ETH’s market position, with analyst Michael Van de Pope suggesting that ETH might outperform Bitcoin as a result.
The $BTC dominance has likely peaked. Ethereum has been outperforming Bitcoin for two months straight.
The upcoming Ethereum ETF will likely push it even further, through which the potential bearish divergence on the weekly timeframe seems inevitable to be valid. pic.twitter.com/gauZeQKYNf
— Michaël van de Poppe (@CryptoMichNL) July 13, 2024
Research from K33 indicated that such an ETF could attract about 0.75-1% of Ethereum’s circulating supply in capital inflows over five months.
Meanwhile, recent data from TradingView shows a 16% increase in Ethereum’s price, jumping from $2,909 to $3,561 over the past week, reflecting investor confidence in the prospective ETFs. This price rise underscores a broader market interest in cryptocurrencies and suggests that the future of Ethereum could be heavily influenced by the ETF decision, potentially narrowing its performance gap with Bitcoin observed over the last 18 months.
Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear.
Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3.
An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.
