SEC Pushes for Revised Spot Ethereum ETF Filings Amid Regulatory Scramble – Investor Bites

All organizations that have applied to be spot Ethereum (ETH) exchange-traded funds (ETFs) are required by the United States Securities and Exchange Commission (SEC) to submit their updated S-1 documentation by Friday.

This decision comes after VanEck, BlackRock, Grayscale, and other competitors’ unexpected approval of spot ETH ETF 19b-4 filings on May 23. But these companies’ initial S-1 filings didn’t fit the SEC’s requirements, which led to a last-minute scramble to change the applications.

This setback doesn’t stop the application process from moving forward. The asset management companies have until Friday to resubmit their updated S-1 filings; following that, the regulator will offer its preliminary comments, requiring more adjustments.

At the same time, a group of JPMorgan analysts led by Nikolaos Panigirtzoglou published a study predicting a muted reaction from the market following the introduction of spot Ethereum ETFs.

According to the 25-page Flows & Liquidity research Spot Ethereum exchange-traded funds (ETFs) will have much lower demand than spot Bitcoin (BTC) ETFs, where BlackRock and Fidelity made headlines by accumulating $10 billion in Assets Under Management (AUM) in a matter of weeks.

Analysts at JPMorgan credit Bitcoin’s success to its ability to be a trailblazer, seizing the early enthusiasm in cryptocurrency items. According to them, the April halving event served as an additional demand driver for spot Bitcoin ETFs. Moreover, the omission of staking from ETF filings could make them less appealing to investors.