The journey to trading Ethereum ETFs has hit a speed bump, with issuers facing deadlines for final 19b-4 forms, but a long wait ahead before trading can begin. According to sources, the SEC's approval is just the first hurdle, with S-1 registration statements requiring significant work and no conversations with exchanges started yet. The wait could be weeks, depending on the SEC's responsiveness.

The SEC's tendency to make decisions after market close historically aligns with Bloomberg ETF analyst Eric Balchunas' estimate of a 4 p.m. ET decision today. With the final deadline for the VanEck Ethereum ETF application today, the agency has a narrow window to approve all ETFs at once. However, the path to trading is complex, with S-1s needing multiple rounds of review and approval, casting doubt on a swift start to trading.

In contrast to Bitcoin ETFs, where S-1 registration statements were prepared in advance, Ethereum ETFs face a longer and more challenging road. The SEC's scrutiny of S-1s will be crucial, and only when they are deemed effective can trading begin. The wait may be long, but issuers and investors alike are eager to see Ethereum ETFs trading soon.

Grayscale Investments, the world's largest crypto asset manager, has filed Form 19b-4 with the SEC to convert Grayscale Ethereum Trust to a spot Ethereum ETF. This move marks a significant step in bringing Ethereum into the U.S. regulatory perimeter. As the largest Ether investment vehicle globally, with nearly $5 billion in assets under management, Grayscale's efforts are closely watched by the crypto community.

The SEC's decision on Ethereum ETFs will have far-reaching implications for the crypto market. As the first Ethereum futures ETFs have already been cleared, the agency's move on spot Ethereum ETFs is eagerly anticipated. While some predict approval by late 2025 or early 2026, others believe it may happen sooner. The SEC's Chair, Gary Gensler, has emphasized that the agency's approval of spot Bitcoin ETFs was specific to that cryptocurrency, leaving the fate of Ethereum ETFs uncertain. As the crypto landscape evolves, one thing is clear – the road to Ethereum ETF trading will be long and winding.