Bloomberg analysts estimate that spot Ether exchange-traded funds (ETFs) will start trading in June following the recent approval by the US Securities and Exchange Commission (SEC).
On May 23, the SEC approved the 19b-4 filings by eight applicants for spot ETH ETFs. ARK 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, Grayscale, Invesco Galaxy, and VanEck have all received the SEC’s green light.
The approval marked a significant breakthrough for the cryptocurrency industry, as it garners attention during the ongoing US presidential campaigns.
Despite the approval of the 19b-4 filings, analysts now believe it will be weeks before these products officially launch for trading.
Spot Ether ETFs Will Start Trading In Mid-June
According to Bloomberg ETF analyst James Seyffart, the recent approval does not mean that the spot ETH ETFs will start trading immediately. The SEC only approved the 19b-4 filings. It also needs to approve S-1 documents, which, according to Seyffart, might take weeks.
“This is just 19b-4 approval. Also needs to be an approval on the S-1 documents, which is going to take time,” Seyffart said. “We’re expecting it to take a couple of weeks but could take longer. Should know more within a week or so!”
Seyffart’s argument was supported by fellow analyst Eric Balchunas, who estimates that the Bitcoin ETFs will go live in mid-June.
The SEC had urged all the applicants to amend their 19b-4 filings in a move that renewed the hope of approval. The regulator called for the applicants to remove staking.
Moreover, not all applicants gained approval. The Hashdex spot ETH ETF, whose deadline is May 30, did not get the regulator’s green light.
Election Season Triggers Sentiment Change
Politics has played a significant role in changing sentiments towards crypto among US legislators and regulators.
“Shark Tank” investor Mark Cuban had earlier said that if the SEC and US Congress failed to abandon their harsh stance against the crypto industry, Joe Biden was likely to lose the November elections.
Recently, the US Congress passed a crypto bill bringing more regulatory clarity to the industry. The White House did not veto the bill despite initially threatening to do so.
Biden’s rival in the November elections, Donal Trump, also recently added crypto donations into his campaign trail.
The Bottom Line
The SEC has approved spot Ethereum ETFs. However, these products will start trading once the regulator approves the S-1 documents, which could take weeks.
The surprising approval comes as the upcoming US presidential elections appear to shift Washington’s views about the cryptocurrency market.
