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Bloomberg’s ETF analysts have explained that the U.S. Securities and Exchange Commission (SEC) could start the approval process for spot ethereum exchange-traded funds (ETFs) tomorrow. They noted that the securities regulator has requested revised Form 19b-4s from issuers to be submitted by Tuesday morning, indicating “likely approval” as soon as Wednesday. This submission is a necessary step in the ETF approval process.
Analysts Discuss Possible Timeline for Spot Ether ETF Approval
Amid intense speculation regarding the potential approval of spot ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) on Monday, Bloomberg’s ETF analysts shared their expectations on social media platform X.
Eric Balchunas, a senior Bloomberg ETF analyst, wrote: “The Eethness Stakes is pretty good. Nice look at all the entrants dealing with this fire drill.” He added that the SEC wants revised Form 19b-4s submitted by 10 a.m. on Tuesday, based on several comments received on Monday, for likely approval as soon as Wednesday. Form 19b-4 is used to inform the SEC of a proposed rule change by a self-regulatory organization (SRO).
Balchunas’ statement was in response to a list of spot ethereum ETF applications shared on X by another Bloomberg ETF analyst, James Seyffart. The list includes Vaneck Ethereum ETF, ARK 21shares Ethereum ETF, Hashdex Nasdaq Ethereum ETF, Grayscale Ethereum Trust, Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund, Ishares Ethereum Trust, Franklin Ethereum ETH, and Bitwise Ethereum ETF. He described this lineup as the “ETHness Stakes.”
The SEC faces deadlines on May 23 and May 24 to decide on spot ethereum ETF applications by Vaneck and Ark Invest, respectively. Seyffart and Balchunas have increased their expectation of spot ethereum ETF approval to 75% following reports that the SEC has requested issuers to resubmit Form 19-bs on an accelerated basis. Seyffart clarified that he and Balchunas increased odds to 75% “for the 19b-4 May 23rd deadline (Vaneck’s deadline).” The analyst added that the SEC still needs to approve Form S-1s (registration statements) for spot ether ETFs. He opined:
We also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus a live ETH ETF.
Until Monday, most people anticipated that the SEC would reject spot ethereum ETF applications. SEC Chair Gary Gensler has avoided directly addressing whether ETH is a security. A recent court document also shows that the securities watchdog has initiated a formal investigation into ether as a potential security.
Lawyer Jake Chervinsky opined on X: “If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who’s close to this process. That doesn’t mean it won’t happen. It means approval could signal a major shift in U.S. crypto policy after the SAB 121 vote, perhaps more important than the ETF itself.” Chervinsky was referring to the SEC’s controversial Staff Accounting Bulletin No. 121 (SAB 121), which imposes regulatory burdens on digital asset custodians. Congress has voted to overturn SAB 121 but President Joe Biden has threatened to veto the decision.
Agreeing with Chervinsky, Seyffart wrote: “This is the correct take. I was literally in DC last week for [Perianne Boring’s] Blockchain Summit and almost every single person I spoke to said that it [spot ether ETF] was going to be denied. Only one person thought it would be approved out of like 30+.”
When do you think the SEC will approve spot ethereum ETF applications? Let us know in the comments section below.