[NEWS] SEC requires spot Ethereum ETF issuer to file S-1 registration statement

The SEC (U.S. Securities and Exchange Commission) has requested that spot Ethereum (ETH) ETF issuers submit updated S-1 registration statements by the 31st of this month (U.S. time). This was reported by a person related to The Block, a U.S. cryptocurrency media outlet, who is familiar with the matter.

An S-1 registration statement is a registration document for newly listed securities. On the 23rd of this month, the SEC approved 19b-4 documents related to eight Ethereum spot ETFs, but this is a document related to proposed rule changes set by a self-regulatory organization, and the S-1 registration statement must be approved in order for the ETFs to actually begin trading.

There was a strong view that the SEC would reject all applications for spot Ethereum ETFs at first, but it has suddenly changed course to approve them. Many analysts point out that this is due to political pressure.

On the day the spot Ethereum ETF was approved, VanEck reportedly filed an amended S-1 registration statement. On the 30th, BlackRock also filed an amended S-1 registration statement.

However, approval of the S-1 registration statement may take some time. Some analysts predict that the issuer of a spot Ethereum ETF will need to prepare and submit at least two drafts of the S-1 registration statement in order to get it approved. Therefore, some analysts predict that it may take several months for the S-1 registration statement to be approved.

On the other hand, tickers for each company's spot Ethereum ETF are registered with DTCC (Depository Trust & Clearing Corporation), the world's largest securities clearing organization.

Registration with DTCC is considered a preliminary process in the listing process, but it does not guarantee that the SEC will approve the spot EthereumETF. However, it will not be registered unless the product is close to being approved for listing.

Eric Balchunas, an ETF analyst at Bloomberg Intelligence, was positive about the development. In a post on X, he said the updated filing is a "good sign" for the industry, and that the series of events suggests that an Ethereum spot ETF may be introduced to the market soon.

Source: News, Balchunas X

Image: Shutterstock

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