A newly approved spot Ethereum (ETH) exchange-traded fund could soon launch, pending approval of an S-1 registration statement by U.S. securities regulators. The approval for the 19b-4 filing allows the funds to list on their respective exchanges, marking a significant step forward for the crypto industry.
Bloomberg ETF analyst James Seyffart anticipates the S-1 approval could be completed within weeks, with a potential launch as early as mid-June. Eric Balchunas, another Bloomberg analyst, concurs, suggesting a smooth process with only one round of comments on the S-1 amendment.
However, Gabriel Shapiro, general counsel at Delphi Labs, raises the possibility of a challenge to the SEC's decision within the next 10 days by one of its commissioners. Despite this potential hurdle, digital asset lawyer Joe Carlasare believes such a challenge is unlikely, given the SEC's approval process.
Once the S-1 is approved, Seyffart predicts significant flows into the spot ether ETF, potentially reaching 20% of those seen by the spot bitcoin ETF. Balchunas offers a more conservative estimate, projecting flows in the 10-15% range.
Concerns linger about potential outflows from the Grayscale Ethereum Trust as investors shift to spot ETFs. With over $11.3 billion locked up in the Grayscale Ethereum Trust, there's a possibility of significant market dynamics as spot ETFs gain traction.
