Jimmy Ragosa, who serves as the product manager at Consensys, anticipates that the Securities and Exchange Commission (SEC) is on the verge of approving the S-1 paperwork for Ethereum spot-based Exchange-Traded Funds (ETFs) in a matter of days.
Ragosa made this prediction in response to Bitwise’s updated S-1 document for an Ethereum ETF, which was submitted on June 18. Upon comparing the revised filing with the previous version, Ragosa noted that Bitwise had omitted details regarding the fee structure and initial investment.
In the June 18 submission to the SEC, Bitwise included enhancements related to risk factors, legal and regulatory disclosures, contact details, and distribution strategies. Ragosa pointed out that if these updates were the only feedback from the SEC, the regulatory body could greenlight the S-1 filings in the near future.
Recent Developments in SEC Requests
Less than a week ago, the SEC provided feedback to potential issuers of Ethereum ETFs regarding their S-1 filings. Bloomberg’s ETF analyst, Eric Balchunas, confirmed this development on June 14, describing the SEC’s comments as relatively minor.
According to Balchunas, the SEC instructed the prospective Ethereum ETF issuers to submit revised S-1 filings within the current week.
Last month, Ethereum ETFs made significant progress towards their launch in the U.S. when the SEC approved the submission of eight 19b-4 documents from exchanges looking to list these products. At present, the SEC’s approval of the S-1 paperwork is the final hurdle before Ethereum ETFs can be traded on U.S. exchanges.
Potential Timeline for Ethereum ETF Launch
Balchunas speculates that the SEC might give the green light to the S-1 documents by or before July 2, potentially leading to the debut of Ethereum ETFs.
Initially, Balchunas had earmarked July 4 as the possible launch date for the Ethereum ETF. However, given the SEC’s request for limited revisions to the S-1 filings, he revised the timeline to July 2, which is just under two weeks away.
It remains uncertain whether the SEC will demand further updates to the S-1 filing. Meanwhile, the SEC has concluded its inquiry into whether specific sales of Ether (ETH) by Consensys qualify as securities.
Based on the investigation’s findings, the SEC did not recommend any enforcement actions. This suggests that the regulatory classification of ETH should not impede the potential introduction of Ethereum spot-based ETFs.
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