Bloomberg analyst Eric Balchunas has adjusted his projected timeline for the launch of Ethereum Spot ETFs in the United States. This change comes after the US Securities and Exchange Commission provided feedback on the second round of S-1 forms submission.
In May, the SEC swiftly approved the 19b-4 filings from eight potential issuers of the Ethereum spot ETF, marking the initial step towards the introduction of these investment funds. The Commission is now expected to review and approve the S-1 forms of these proposed ETFs, which contain vital information such as investment objectives, strategies, risks, and fees.
After the initial submission of draft S-1 forms on May 31, the SEC responded promptly with minor comments for amendments. Based on this efficiency, Eric Balchunas anticipated the approval of these forms by July 2 for the potential launch of the Ether spot ETF. However, the SEC delayed its response on the second round of comments, leading to a revised timeline by Balchunas.
Due to the upcoming US Thanksgiving holiday, which will limit work next week, Balchunas predicts that work on the S-1 forms will resume on July 8, with approval to follow shortly after.
Unlike the 19b-4 forms, the S-1 forms do not have a fixed deadline, and approval depends on the SEC’s satisfaction with the issuers’ proposed terms. SEC Chairman Gary Gensler previously mentioned that this process could take time, emphasizing the importance of applicants’ responsiveness to the Commission’s feedback.
In other news, investors and analysts remain optimistic about the potential performance of Ethereum Spot ETFs once they begin trading. Charles Yu, Vice President of Research at Galaxy Research, expects these funds to attract significant demand, with predictions of $1 billion in monthly flows for the first five months of trading.
Yu also anticipates Ethereum to exhibit higher price sensitivity to these inflows compared to Bitcoin, citing factors such as lower net inflation and a lower supply percentage on exchanges.
Overall, the outlook for Ethereum Spot ETFs is positive, with expectations of substantial inflows and market impact once trading begins.