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SEC Approves Spot Ether ETFs, But Why Isn't Ethereum Mooning?

It might take some time before these products are available for trading. To begin trading, their S-1 registration statements must become effective.

  • U.S. SEC approved eight 19b-4 forms for spot Ethereum ETFs, which include offerings from BlackRock, Fidelity, and Grayscale.
  • Spot ether ETFs may not be available for trading immediately, as S-1 registration statements need to be effective.

Undoubtedly, Ethereum enjoys immense love from decentralized maximalists. But it seems that when it comes to cryptocurrency, Bitcoin has the upper hand. 

In January this year, the U.S. Securities and Exchange Commission (SEC) approved several spot Bitcoin ETFs, propelling Bitcoin to new all-time highs (ATH) and strong market performance. 

In contrast, Ethereum has not seen the same level of excitement. The SEC has repeatedly postponed decisions on spot Ethereum ETF applications, such as those from Hashdex and Ark 21Shares, with the final verdict now expected in late May. 

In fact, the CEO of VanEck, Jan van Eck also believed that it's unlikely for ether ETFs to receive approval by their May deadline. 

However, despite the negative takes, the SEC approved the listing of eight spot ether ETFs on their respective exchanges on May 23. Meaning, the 19b-4 forms for ether ETFs were approved, which include offerings from BlackRock, Fidelity, and Grayscale.

But it might take some time before these products are available for trading. To begin trading, their S-1 registration statements must become effective.

When spot Bitcoin ETFs were approved, the S-1 forms were prepared before the 19b-4 approvals, leading to their quick effectiveness and trading commencement the next day.

A user on X (formerly Twitter) who goes by the name “_gabrielShapir0” shared “why ETH isn’t mooning”. 

Zach Rynes, a crypto commentator and Chainlink's community liaison, also shared his take on the event. He suggests that the absence of activity indicates that those interested in purchasing the approval have already done so.

A recent report suggests that the newly-approved spot ether ETFs might debut as soon as mid-June. This timeline aligns with the process seen for spot Bitcoin ETFs.

Bloomberg's ETF analyst, James Seyffart, also predicts S-1 approvals could arrive in a "couple of weeks," but acknowledges they might take longer, often up to five months. 


Edited by Harshajit Sarmah

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