The possible approval of Spot Ethereum ETFs has generated significant buzz in the crypto world. Industry experts are weighing in on when the U.S. Securities and Exchange Commission (SEC) might give its approval. Nate Geraci, the host of the ETF Prime podcast, recently suggested that the S-1 approvals could happen within a few weeks.

Timeline for Spot Ethereum ETF Approval

Geraci shared on X, “When will SEC approve spot eth ETF registration statements? *Nobody* knows for sure, but my expectation would be next few weeks. 2-3 months max.” He believes the process could be quicker due to the prior approval of Bitcoin ETFs. According to Geraci, the SEC has already tackled much of the groundwork with the approval of Spot Bitcoin ETFs and Ethereum futures ETFs, implying it might just be a matter of how long the SEC decides to wait.

Eric Balchunas, a senior ETF analyst at Bloomberg, interacted with Geraci’s post, suggesting a potential approval around July 4, 2024. Balchunas remarked, “July 4th feels like a good over/under.” Geraci agreed, adding, “I like it… I’ll take under, but right timeframe IMO.”

Thus, it seems the S-1 approvals might take more than a month. While the approval might not be as swift as with Bitcoin ETFs, the timeline is still relatively early given the ongoing debates around Ethereum’s regulatory status. Therefore, it’s unlikely that Spot Ethereum ETF trading will commence in the coming month.

Factors Causing Delay in Launch

This discussion follows Bloomberg analyst James Seyffart’s detailed explanation of the approval process. Seyffart emphasized the distinction between SEC approval and the actual launch of the ETF. The 19b-4 filings for eight Spot Ethereum ETFs were approved on May 23.

However, Seyffart noted that the next crucial step is the approval of the S-1 forms, which could take longer. He explained, “We also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus a live Eth ETF.”

Seyffart pointed out the misconception that the 19b-4 and S-1 approvals would occur simultaneously, as they did with the Spot Bitcoin ETF. He clarified that the SEC’s approval process typically involves a time gap before the product launch. This process requires ongoing communication between the regulator and the applicants, which only began recently. In the case of the Spot Bitcoin ETF, this interaction took several weeks. Hence, the timeline for the approval and launch of Spot Ethereum ETFs remains uncertain.

Despite this, the optimism from experts like Geraci and Balchunas suggests that significant progress could be made in the coming months. As Geraci mentioned, the SEC has already dealt with the complexities of similar ETF approvals, which might speed up the current process for Ethereum.

In conclusion, while there are still several steps and potential delays, the approval and launch of Spot Ethereum ETFs appear to be on the horizon. Industry experts are hopeful that the process will advance soon, leading to significant developments in the financial community.