Ethereum ETF has been approved, but how long will it take to go online for trading?

Author: Tim Copeland Source: theblock Translation: Shan Ouba, Golden Finance

• Eight Ethereum ETFs were approved in an omnibus order earlier today.

• However, it may take weeks or even months for the S-1 registration statement to be approved and the products to be listed for trading.

Eight spot Ethereum ETFs were approved in an omnibus order earlier today. However, it may take some time before they can go live for trading.

The SEC approved Form 19b-4 for Ethereum ETFs, including products from BlackRock, Fidelity and Grayscale. But to start trading, the S-1 registration statements for these products still need to become effective.

When the Bitcoin ETF was approved, the S-1 was ready before the 19b-4 was approved. This allowed the S-1 to go into effect very quickly and start trading the next day.

What’s different about the Ethereum ETF is that the SEC didn’t start engaging with the issuers until earlier this week. Experts speculate that this last-minute change may have been a political decision. Now, while the issuers were able to quickly file the 19b-4 before today’s deadline for the VanEck ETF, there has been little communication about the S-1.

According to a source close to the process, there is still a lot of work to be done on the S-1. They said it could take several weeks to resolve all the issues, but it ultimately depends on how quickly the SEC responds. As a result, exchanges and issuers have not yet begun discussions about listing these products.

This is consistent with the estimates of industry experts. "I don't know how fast the fast track is, but it may be very tight in the next few days or even weeks - depending on the progress of the S-1 form," Bloomberg ETF analyst Eric Balchunas said in an interview with The Block before the approval of the 19b-4 form.

Galaxy Digital predicts that the spot Ethereum ETF will be listed on the exchange in July or August. The risk level of the spot Ethereum ETF is "significantly" higher than that of the spot Bitcoin ETF, which may prolong the time for regulators to make decisions on these funds, Galaxy Digital said in the report.

Following today’s order, the SEC will likely begin providing feedback to issuers on their S-1 forms and working with them to get them ready. Trading can only begin once that step is complete and the exchanges are ready.

So while Ethereum ETFs have been approved, it could be weeks before they start trading — depending on how urgent the SEC is.