Ethereum Funds Could Start Trading Soon as SEC Demands Response by Week’s End

By Aaron Feuerstein May 31, 2024 In Blackrock, Ethereum, SEC
Crypto Trading theme with businessman using a tablet computer
  • The SEC accelerates Ethereum ETF approvals, requesting S-1 forms by Friday for imminent trading.
  • Early filers like VanEck and BlackRock prepare for trading as analysts predict quick approval post fine-tuning.
  • Recent events indicate crypto is becoming more politicised as candidates seemingly throw their support behind the nascent asset class.

Approval of Spot Ethereum exchange-traded funds (ETFs) is getting closer and closer it seems. According to a report by The Block, the Securities and Exchange Commission (SEC) has asked applicants to hand in their draft S-1 forms by Friday US Time.

Related: BlackRock’s IBIT Overtakes Grayscale Fund, Becomes Fastest ETF to Reach $20 Billion AUM

The S-1 filings are required for the funds to start trading, whereas last week’s 19b-4 forms allowed applicants to list funds on exchanges.

VanEck was one of the first to file the required S-1, mere hours after the 19b-4 approval. BlackRock updated its form Thursday with US$10 million (AU$15 million) in seed funding.


Analysts expect a swift approval after some “fine-tuning”, which could see funds trading within weeks.

Some analysts believe that Grayscale funds will see large initial outflows similar to those observed post Bitcoin fund approval.

A few weeks until a listing is optimistic, as the S-1 process often takes months as filings are addressed by the SEC and then need follow up and re-submission by applicants. Sources told The Block they expect “at least two more rounds of draft filings before they will be ready”.

Ethereum Price Remains Inactive

Prior to approval, amid rumours that the approval process for the 19b-4 filings had significantly improved, ETH rallied by as much as 30%. However, it has been trading sideways for several days – seemingly not reacting to the recent events.

ETF approval timeline and ETH/ USDT price, source: TradingView

Commentator MartyParty (@martypartymusic) said the fast-tracking was influenced by imminent political changes due to elections and the commencement of quantitative easing which boosts market liquidity.

His comments come as Donald Trump has recently voiced his full support for crypto, going so far as to say, “If you support cryptocurrency, vote for me”. Crypto is becoming a defining topic in this presidential election, as a survey shows more and more US Citizens are interested in the asset class.

Related: British Fintech Giant Revolut Eyes APAC Expansion as Australian Spending Soars

Additionally, Joe Biden and his election campaign are said to be reaching out to crypto and Bitcoin supporters.

US Citizens will cast their votes on who will be the next president on 4 November in the 60th quadrennial presidential election.

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Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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