Consensys Predicts Ethereum ETF Approval Within Days
Blockchain startup Consensys has forecasted that spot Ethereum ETF S-1 registrations will soon receive approval. Analysts are anticipating an early July approval, allowing trading to begin.
Ethereum ETF Approval Sentiments
Blockchain software technology company, Consensys, predicts that the SEC will approve S-1 filings for spot Ethereum Exchange Traded Funds (ETFs) within days. Collin Brown, a prominent blockchain researcher, believes this could serve as a bullish signal for Ethereum, the second-largest cryptocurrency.
Jimmy Ragosa, product manager at Consensys, suggests that the wait for spot Ethereum ETFs trading in the U.S. is nearly over. His optimism is based on an amended S-1 document submitted by Bitwise Asset Management to the Securities and Exchange Commission (SEC) on June 18.
He pointed out that compared to the previous version, Bitwise's update omits details about the fee structure and initial investment. According to Ragosa, the SEC’s feedback focused mainly on risk factors, legal and regulatory statements, contact information, and the distribution plan. Based on these revisions, Ragosa anticipates imminent approval from the SEC.
Positive Outlook from Analysts
This optimistic perspective aligns with recent comments from Bloomberg ETF analyst Eric Balchunas. He noted that the SEC’s earlier feedback to prospective Ethereum ETF issuers was “pretty light,” involving only minor revisions. Balchunas revised his initial prediction for the launch date from July 4 to July 2, influenced by the expedited S-1 approval timeline.
Last month, the SEC approved eight 19b-4 documents from exchanges seeking to list Ethereum ETFs. With that hurdle crossed, the S-1 approval remains the final regulatory step for Ethereum ETF trading in the US.
Meanwhile, VanEck, another investment manager, believes approvals for spot Ethereum ETFs could happen within the coming weeks. Matthew Sigel from VanEck mentioned that the firm is accumulating Ethereum in preparation for the launch.
SEC Concludes Ethereum Sales on Consensys
Adding to the positive sentiment surrounding Ethereum ETFs is the recent conclusion of the SEC’s investigation into Consensys’ ETH sales. The investigation, which examined whether these sales were security offerings, ended without recommending any enforcement action, thereby clearing a potential hurdle for Ethereum ETF approval.
Consensys reported that this victory follows numerous regulatory challenges and a lawsuit. However, the SEC cautioned that the closure of the investigation should not be interpreted as an exoneration.
Market Reaction
Despite this victory, ETH, the native asset of Ethereum, appeared to react negatively to these developments. At press time, ETH was trading at $3,481, marking a 3% decrease over 24 hours. However, the trading volume increased by 11% to $15.9 billion, indicating renewed investor interest.
Disclaimer: This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.
