Spot Ethereum ETF is set to commence trading on July 23, SEC insider sources stated. As revealed by Bloomberg analyst Eric Balchunas, the SEC has instructed the prospective issuers to submit the final S-1 form this week and apply for effectiveness after the market closes next Monday. This process will enable them to begin trading on Tuesday, July 23.
Nate’s instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last-minute issues of course.
This launch of the highly awaited ETH ETF was expected to occur as early as July 2 but got postponed by the U.S. Securities and Exchange Commission. As per Balchunas and James Seyffart, the US regulator took additional time to return the S-1 forms submitted by prospective spot Ether ETF issuers, pushing the launch to mid-July or later.
The ETF approval process is two-fold. The first part involved the approval of the issuers’ 19b-4 forms in May which the SEC greenlighted 19b-4 filings from eight ETF bidders on May 23. S-1 forms are the next step required for the ETFs to go live. However, unlike the 19b-4 forms, the S-1 forms are not time-bound. As a result, issuers are subject to the SEC’s timeline for review and approval.
Incoming Ethereum’s Supply Crisis
Once ETH ETF goes live, market observers anticipate a huge capital influx similar to Bitcoin ETF. However, a supply crisis looms large. Experts have noted two notable trends. One, the exchange balances have shrunk to just 10.2% of the total supply. Secondly, a whopping 40% of ETH is currently locked in smart contracts, significantly reducing the circulating supply available for trading.
Despite these figures, there is a lack of awareness among many investors of how constrained Ethereum’s supply has become. This tight supply scenario is set to have a noticeable impact, especially with the anticipated approval of Ethereum ETFs.
The introduction of ETFs is expected to drive even greater demand for Ethereum, further exacerbating the supply crunch. As a result, the market could experience significant price movements as demand outstrips supply, leading to unprecedented shifts in Ethereum’s market dynamics.
