Ethereum ETFs Approved, But Trading Could Take Weeks to Start

With the approval of eight Ethereum ETFs, investors are eager to know when these products will be available for trading. Despite the approval, it might take weeks or months before these ETFs go live. Today, the SEC approved the 19b-4 forms for Ethereum ETFs from issuers like BlackRock, Fidelity, and Grayscale. However, their S-1 registration statements need approval before trading can begin.

For Bitcoin ETFs, the S-1 forms were ready before the 19b-4 approvals, allowing quick trading to start. For Ethereum ETFs, the SEC only began engaging with issuers this week, suggesting possible political motives behind the timing.

Issuers submitted their 19b-4 forms quickly to meet the deadline, but there's been little communication about the S-1 forms. These forms still need significant work, potentially taking weeks to resolve based on the SEC's responsiveness. Exchanges and issuers have yet to discuss making these products live.

Experts predict varying timelines for the launch. Bloomberg ETF analyst Eric Balchunas mentioned it could be a "mad scramble" over days or weeks, depending on S-1 approvals. Galaxy Digital forecasts that spot Ethereum ETFs might list by July or August but notes these ETFs have a higher risk profile than Bitcoin ETFs, possibly delaying approval.

Following today’s order, the SEC is expected to provide feedback on the S-1 forms. This collaboration is crucial to preparing the ETFs for trading. Once approved and exchanges are ready, Ethereum ETFs can start trading.

Despite the approval, trading may not begin for several weeks. The timeline depends on how quickly the SEC addresses issues with the S-1 forms. Regulatory processes can be unpredictable, and the added complexities of Ethereum ETFs might extend the timeline.

Unlike Bitcoin ETFs, the preparatory work for Ethereum ETFs was not done in advance. This delay has led to speculation about the reasons behind the SEC's timing. Some believe political factors influenced the SEC's actions.

A realistic timeline for Ethereum ETFs to go live could be within weeks to months. Industry predictions suggest July or August as potential dates. This depends on the efficiency of the SEC and issuers in finalizing the S-1 forms.

While the approval of Ethereum ETFs is a significant step forward, investors should expect a waiting period before these products trade. The need for thorough review and approval of S-1 forms makes the timeline uncertain. However, the process is progressing, and the eventual launch will be notable in the crypto market.

As the SEC works with issuers to finalize the S-1 forms, the timeline will become clearer. For now, patience is required as these necessary steps are taken to bring these ETFs to the market.