Gradually, the arrival of Ethereum spot ETFs is becoming clearer. It has recently been announced that the Securities and Exchange Commission (SEC) is communicating through the S-1 form, which is the final step before launch. Where are we now, and what can we expect in the coming hours ?

Ethereum spot ETFs are taking shape

Today, the SEC is expected to make a decision on the first Ethereum spot ETF, after delaying its decision as much as possible. Therefore, we will soon find out if VanEck’s application, specifically the 19b-4 form, will be approved. Following that, the S-1 form, which is the official registration of the ETF, will be validated. These two steps were consecutive for Bitcoin spot ETFs.

However, this time, the SEC will have to catch up. It was initially positioned to reject the first wave of Ethereum spot ETFs, but it seems that an order from above has forced it to approve the ETFs earlier than expected. As a result, it must hastily request modifications to the S-1 forms.

According to one of the ETF applicants interviewed by my colleagues at The Block, this is a positive sign, even though it is happening more hastily than anticipated :

“It’s starting to happen. It kind of looks like they were caught off guard by the change in direction.”

It seems that the Joe Biden administration, in the midst of an election campaign, has indeed pressured the SEC to quickly approve the Ethereum spot ETFs.

What can we expect in the next few hours ?

At this stage, only one candidate has submitted a modified S-1 form: Fidelity. The other candidates will likely have to make the same changes. According to Eric Balchunas from Bloomberg, it’s only a matter of hours before the approval of the 19b-4:

My best guess is we hear from the SEC around 4pm tomorrow. For spot btc they dropped it at 3:45pm, some others in past were slightly after 4pm. Anything poss tho https://t.co/MzTOcsmTnJ

— Eric Balchunas (@EricBalchunas) May 22, 2024

According to him, the decision should be made around 4 pm in the United States, which is around 10 pm French time. There will likely be several back-and-forths with the candidates today. As a reminder, the deadline for two other applications is set for tomorrow, namely ARK Invest and 21 Shares.

In the meantime, the price of ETH is sharply rising. The cryptocurrency has surged since this weekend, as rumors of approval began. In just over 3 days, Ether has gained 26%. If Van Eck’s Ethereum ETF is approved today, the upward trend may continue.

Source : Eric Balchunas via X, The Bloc