Bloomberg analyst Eric Balchunas has adjusted his projected timeline for the launch of Ethereum Spot ETFs in the US following recent SEC comments on the second round of S-1 form submissions.

In May, the SEC swiftly approved 19b-4 filings from eight potential issuers of Ethereum spot ETFs, marking an initial step toward introducing these investment products. According to US regulations, the SEC is now expected to greenlight the S-1 forms, which detail an ETF's investment objectives, strategies, risks, and fees, among other aspects.

After initial submissions on May 31, the SEC responded promptly with what were described as minimal comments, requiring all issuers to submit requested amendments within a week. Balchunas speculated that, given this efficiency, the SEC might approve these forms by July 2, potentially paving the way for the launch of Ether spot ETFs. However, the SEC's second round of comments arrived late, albeit with similarly minor requests for adjustments.

In light of these developments and the upcoming US Thanksgiving holiday, which will likely slow down proceedings next week, Balchunas anticipates the SEC to resume work on the S-1 forms around July 8, with approval expected shortly thereafter.

Unlike the fixed deadline for 19b-4 forms, the approval of S-1 forms hinges solely on the SEC's satisfaction with the issuers' proposed terms. SEC Chairman Gary Gensler had earlier indicated that this process could take time, emphasizing the importance of issuers' responsiveness to the Commission's feedback.

Investors and analysts remain optimistic about the potential impact of Ethereum Spot ETFs once they commence trading. Charles Yu, Vice President of Research at Galaxy Research, predicts substantial inflows, estimating the ETFs could attract $1 billion in monthly flows during their initial months of trading, akin to the performance seen with Bitcoin ETFs. Yu also expects Ethereum to demonstrate heightened price sensitivity to these inflows, driven by factors like lower net inflation and a smaller supply available on exchanges compared to Bitcoin.