SEC Chair Gensler Hints at Slower Ethereum ETF S-1 Approval
Spot Ethereum ETF launches may be further down the road than initially anticipated, according to SEC Chair Gensler Hints, who has indicated that the required S-1 form approvals “will take some time.” This comes after the 19b-4 forms were just approved, but it suggests that the S-1 forms, which are necessary for the ETFs to start trading, may have a lengthy finalization step.
Gensler’s Comments on S-1 Approval for Ethereum ETFs
Chairman SEC Chair Gensler Hints of the SEC stated in a CNBC interview on a hearing before the digital assets subcommittee that the next steps toward approving an Ethereum ETF are not imminent. This announcement was issued last Friday in response to the SEC’s deadline for issuers to file draft S-1 forms. The SEC will provide initial feedback following this filing, leading to additional revisions, according to those on the inside looking out for the industry.
This cycle of revisions should take a few weeks to a few months at the top. Significant financial firms, such as VanEck and BlackRock. Submitted revised S-1 forms after the 19b-4 forms were approved on May 23, proving this. BlackRock demonstrated readiness and financial backing for these techniques by explaining its ETF’s initial asset of $10 million.
Also Read: Solana is the quickest large-scale blockchain—CoinGecko
Ethereum ETF Market Impact and Investor Expectations
The potential infusion of massive sums of money into the market is why ETH ETFs generate so much buzz. K33 Research estimates that spot Ethereum ETFs might attract $4 billion in investors during the first five months of their availability. This estimation is based on empirical evidence of rising institutional demand for future Ethereum traded on the CME.
As well as comparisons to competing Bitcoin products. Many believe that this influx will significantly reduce the market supply of Ethereum by adding to the amount already in circulation. Since these ETFs have a history of being linked to comparable market developments. K33 Research anticipates that their introduction will drive the price of ETH to reach new all-time highs.
Regulatory Steps and Market Readiness
To regulate these essential financial products, SEC Chair Gensler Hints takes a cautious approach. As seen by its thorough review procedure in dealings with ETF issuers. The underlying assets’ complex structure and possible regulatory challenges may explain the longer assessment duration, which suggests a comprehensive examination.
Companies like BlackRock’s quick reaction demonstrates a strong interest. In these new investment vehicles, and well-established banks are ready to put them to use. As shown by Hashdex and other companies’ decisions to withdraw bids, the industry isn’t prepared or has shifted its focus.
