Bitwise’s chief compliance officer reports that the SEC and prospective Ethereum ETF issuers are pushing back and forth on “fewer and fewer” issues in the S-1 filings.
According to Katherine Dowling, the chief compliance officer of Bitwise, a crypto asset manager, a list of eight spot Ether exchange-traded funds (ETFs) is approaching their launch date; however, the precise date is unclear.
Dowling informed Bloomberg on July 9 that the number of issues being vetted back and forth between issuers and the SEC is decreasing.
“So that points all signs in the direction that we are close. We’re close to the finish line on the launch.”
Form S-1s furnish details regarding the issuer and the securities they propose to offer. The products can be launched after they have been authorized.
Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), recently predicted that Ethereum exchange-traded funds (ETFs) would be introduced during the summer.
“The term “summer” is subjectively defined by each individual.” Dowling stated, “It has been a somewhat extended, hot summer for the waiting issuers.”
Several spot Ether ETF issuers have been awaiting the SEC’s approval of their S-1 registration statements for six weeks following the regulator’s approval of numerous 19b-4 filings on May 23.
Following the initial feedback from the securities regulator, the issuers submitted their amended S-1s in early July.
Matt Hougan, Bitwise’s chief investment officer, predicted that the spot Ether ETFs could generate up to $15 billion in inflows within the first 18 months of trading. This figure is approximately equivalent to the sum the spot Bitcoin ETFs have generated since their inception six months ago.
SEC is open to funds beyond BTC and ETH
Dowling disclosed that the SEC has been amenable to discussions regarding products other than Bitcoin and Ether.
“We have engaged in discussions with the SEC regarding the potential for new products,” Dowling stated.
“I think our communication with the SEC about the prospects for these products has actually been quite welcoming.”
On July 8, the Chicago Board Options Exchange (CBOE) submitted applications to list spot Solana (SOL) ETFs on behalf of VanEck and 21Shares.
Nevertheless, Dowling is still determining if a third-place cryptocurrency ETF would be approved under Gensler’s leadership.
On July 9, senior Bloomberg ETF analyst Eric Blachunas made a comparable observation, stating that a spot Solana ETF application would be “dead on arrival” if Biden were re-elected and Gensler remained the chief of the financial regulator.