Countdown to launch: Ethereum ETFs ready for mid-July debut
TLDR
Bitwise has filed an updated S-1 filing for the Ethereum ETF ahead of the July 8 deadline. Analysts predict that the Ethereum ETF will begin trading in mid-July. The SEC approved Forms 19b-4 for the eight-location Ethereum ETF on May 23, but the final S-1 approvals are still pending. Several ETF issuers, including Bitwise, are offering payment transfers to attract early investors. The SEC's comments on recent filings are sparse, suggesting a launch could be imminent.
The launch of spot Ethereum exchange-traded funds (ETFs) appears to be on the horizon.
Bitwise, a leading asset management firm, has recently filed an updated S-1 registration statement with the US Securities and Exchange Commission (SEC) for Ethereum Ethereum.
This latest development comes just days before the July 8 deadline for such reforms. This move has created optimism among market analysts, who now predict that the Ethereum ETF will start trading in mid-July.
The move into Ethereum ETFs began on May 23, when the SEC approved Forms 19b-4 for eight spot Ethereum ETFs, including Bitwise's offering. However, issuers need their S-1 statements to be effective before trading begins. This two-step process has kept investors and market watchers on their toes.
Bloomberg ETF analyst James Seifert noted the frequency of S-1 form updates, saying, “Expect more from other issuers over the rest of the week.” This pattern suggests a concerted effort among ETF providers to meet regulatory requirements and be ready to launch.
UPDATE: Got another updated S-1 from @BitwiseInvest for their #Ethereum ETF. Expect more from other contributors in the rest of the week. We're thinking these things will be listed next week or week 15 at this point. pic.twitter.com/xqVlt9lSGy
— James Seyff (@JSeyff) July 3, 2024
One notable feature of Bitwise's updated application is the inclusion of payment termination. The company plans to waive a management fee on the first $500 million the fund raises in the first period.
This move is not unique to Bitwise; Other ETF hopefuls, such as Franklin Templeton and VanEyck, have incorporated similar fee waivers into their plans. These strategies aim to lower entry barriers and attract early investors in what is expected to be a competitive market.
The SEC's response to these latest filings has been encouraging. Eric Balchunas, senior ETF analyst at Bloomberg, reported that there was “literally nothing” from the SEC's latest round of comments and it took no time to update.
This minimal feedback indicates that the reviewer is satisfied with the current status of the files, which can pave the way for a smoother approval process.
However, some analysts expressed surprise at the SEC's speed. Despite light comments, the regulator appears to be taking its time with final approvals.
No one knows why the SEC took their sweet time with these, considering how simple the comments were, these could have been easily traded. Could be a ‘problem' giver or lazy/ppl on vaca during summer which slows down process. not sure. That said, all the signs have started…
— Eric Balchunas (@EricBalchunas) July 3, 2024
Balchunas speculated about possible reasons, including summer vacation or a “troublemaker” that could delay the process. However, he confirmed that all signs still point to him starting this month.
The speculation surrounding Ethereum ETFs has had a significant impact on the cryptocurrency market. Following the initial approval of the 19b-4 forms on May 23, the price of Ethereum reached around $4,000. However, once the approval process is complete, the price has returned to around $3,270, according to recent reports.
Looking ahead, the market is awaiting the SEC's final green light on S-1 filings. Some sources suggest that the regulator could approve the final drafts by the end of next week, setting the stage for the commercial launch soon.
