The SEC has requested issuers of spot Ethereum ETFs to submit amended S-1 filings by Friday, with potential delays in trading for several weeks.
In accordance with sources who are aware of the topic, the United States Securities and Exchange Commission (SEC) has reportedly requested that issuers of spot Ethereum exchange-traded funds (ETFs) submit amended S-1 filings by Friday.
On the other hand, it’s possible that the spot Ether ETFs won’t be available for trading for several weeks after the S-1 updates.
SEC Seeks Updated S-1 Filing From Spot Ethererum ETF Issuers
People familiar with the SEC’s communication to issuers have reported that the SEC has requested spot Ethereum ETF issuers to submit their draft S-1 filings by Friday’s deadline.
The Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs) last week following the submission of 19b-4 forms.
This approval came after the regulator made a sudden shift in its interest in favor of spot Ether ETFs, which experts believe occurred as a result of political pressure.
The amended S-1 filing will be a response to comments made by the United States Securities and Exchange Commission, and other revisions to the S-1 are anticipated to take place many weeks before spot Ether exchange-traded funds (ETFs) are listed for trading.
The Securities and Exchange Commission may request that spot ETF issuers go through two additional rounds of revisions before making a final decision on the listing, according to experts.
According to Nate Geraci, who is the host of the ETF Prime Podcast, “There would still be additional amendments following this.” However, it is evident that the SEC is rather active in this area.
With the filing of a revised S-1 for iShares Ethereum Trust, BlackRock has made a significant step toward the launch of a spot Ethereum exchange-traded fund (ETF). Conversely, Hashdex withdrew its application for a spot Ethereum exchange-traded fund due to undisclosed reasons.
BlackRock’s iShares Ethereum Trust is moving forward with its spot, while Ether ETF, VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest, 21Shares, Invesco, and Galaxy are also moving forward with their plans.
ETH Market Reaction
Eric Balchunas, an analyst at Bloomberg, previously predicted that the market’s response to Ethereum exchange-traded funds (ETFs) would not be as enthusiastic as it was to spot Bitcoin ETFs.
Following the announcement that the regulator had requested an amended S-1 file, the price of ether increased by one percent. After reaching a low of $3,702 and a high of $3,823 over the course of twenty-four hours, the price is now more than $3,800.
Additionally, a twenty percent reduction in trading volume over the past twenty-four hours suggests that whales or large investors made the acquisitions.