The United States Securities and Exchange Commission (SEC) has granted approval for a spot Ethereum ETF, but the cryptocurrency world is still awaiting S-1 approval to allow trading of the asset. It is anticipated that some comments will be received from the SEC this week regarding the approval process. Nate Geraci, an analyst, mentioned in a tweet that at least one of the prospective issuers is expecting comments from the regulatory authority this week.
Since the May 31 deadline to submit the first draft of S-1 registrations passed, spot Ethereum ETF issuers have been eagerly awaiting an update on the status of their application. Despite their optimism, nothing definite has been communicated from the Gary Gensler-led commission so far. Some issuers had expected comments on the drafts as of June 7, but two issuers confirmed that they did not receive any communication from the SEC. The only communication from SEC Chairman Gary Gensler during a recent appearance on CNBC was ambiguous.
The delays in the regulatory approval process have led to some issuers dropping out of the race to launch a spot Ethereum ETF. Ark Invest, a notable asset management firm, filed documents with the SEC in partnership with 21Shares to become an Ethereum ETF issuer but later withdrew from the process. Despite believing in Ethereum’s potential and long-term value, Ark Invest decided not to pursue an Ether ETF product.
As issuers await clear communication from the regulatory body, there are concerns among stakeholders about the potential of the spot Ethereum ETF product. Global banking firm JPMorgan believes that these products may attract a lower share of inflows than expected. However, analysts remain optimistic that if the SEC gives the green light, the product is likely to perform well in the crypto space.
In conclusion, the cryptocurrency world is eagerly awaiting S-1 approval from the SEC to allow trading of the spot Ethereum ETF. While some issuers are optimistic about receiving comments from the regulatory authority this week, others have dropped out of the race due to regulatory delays. Stakeholders have expressed concerns about the potential of the product, but analysts believe that if approved, the spot Ethereum ETF could perform well in the crypto space. Despite the uncertainties surrounding the approval process, the cryptocurrency community remains hopeful for a positive outcome.
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