With Ethereum ETFs now approved, how long until they go live?
Quick Take
- Eight Ethereum ETFs were approved earlier today in an omnibus order.
- However, it may be weeks or even months before the S-1 registration statements are approved and the products are made available for trading.
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ETFs were approved in an omnibus order earlier today. Yet it may be a while longer before they go live.
The SEC approved the 19b-4 forms for Ethereum ETFs, which include offerings from BlackRock, Fidelity and Grayscale. For these products to start trading, however, their S-1 registration statements need to go effective.
When the Bitcoin ETFs were approved, the S-1 forms were ready ahead of the 19b-4 approvals. This resulted in the S-1 forms becoming effective very quickly, with trading beginning the following day.
What's different for the Ethereum ETFs is that the SEC hadn't been engaging with issuers until earlier this week. Pundits have speculated it may have been a political decision behind this last-minute change of heart. Now while the issuers were able to turn around the 19b-4 forms quickly — ahead of today's deadline for the VanEck ETF — there hasn't been much communication regarding the S-1 forms.
The S-1 forms still have much more work to do, according to a source close to the process. They said it could take weeks to resolve any issues, but this ultimately depends on how responsive the SEC is. As such, exchanges and issuers haven't even begun talking about putting the products live, they said.
RELATED INDICES
This matches estimates by industry experts. Bloomberg ETF analyst Eric Balchunas told The Block in a recent interview ahead of the 19b-4 approvals, “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.”
Galaxy Digital predicts that spot Ethereum ETFs will be listed on exchanges in July or August. Spot Ethereum ETFs have “significantly” greater risk profiles than spot Bitcoin ETFs, which could prolong regulators’ decision-making on the funds, Galaxy Digital said in the report.
Following today's order, it's likely the SEC will start to provide feedback to issuers about their S-1 forms and work with them to get them ready. Only once this has taken place and exchanges have become prepared, trading can begin.
As a result, while the Ethereum ETFs have been approved, they may not start trading for a few weeks — perhaps longer or shorter depending on the agency's urgency.
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