The U.S. Securities and Exchange Commission has begun discussions around S-1 registration statements with prospective Ethereum ETH +2.19% ETF issuers, according to a source.

“Basically, it's just starting,” said a high-ranking member at an issuer when asked about conversations relating to S-1 forms. “It feels a little like [the Division of Investment Management] was more-or-less caught off-guard by the change of tune. So, just starting.”

The source added that they don’t expect the progress toward an Ethereum ETF to get scrapped but remained cautious.

For the Ethereum ETFs to be approved, the SEC must approve the 19b-4 forms — which was done in one omnibus order for the Bitcoin ETFs — and then the S-1 registration statements must become effective. Only then can trading begin.

Ahead of each approval, typically, the forms are sent back for amendments and refiled. When final versions are submitted, the SEC may choose to approve them. While there has been a lot of movement on the 19b-4 forms, only Fidelity has recently filed an amended S-1 form. With discussion over the S-1s now underway, there may be more amendments to come.

SEC faces decision day over Ethereum ETFs

As for the 19b-4 forms, the SEC has a deadline of today to approve or deny the VanEck Ethereum ETF’s 19b-4 form. Due to the perceived intent to approve multiple issuers in one go — as happened with the Bitcoin ETFs — pundits are optimistic that, if the ETFs get approved, this would happen today.

Bloomberg ETF analyst Eric Balchunas said on X that he anticipates the SEC will make a decision around 4 p.m. ET. "For spot BTC, they dropped it at 3:45 p.m., some others in past were slightly after 4 p.m. Anything [is possible though]," he said.

However, even if the 19b-4 forms are approved, it might take some more time before the S-1 forms are ready and go into effect. This means the S-1 forms could delay how long it takes before trading gets started.

As Balchunas told The Block in a recent interview, “I don't know how fast the fast track is, but it's going to be probably a mad scramble for the next couple days, maybe even weeks — depends on the S-1.”