According to attorney Scott Johnsson, the U.S. Securities and Exchange Commission (SEC) may greenlight an Ethereum (ETH) spot ETF as soon as May 2024.
Johnsson estimates that approval could be expected by mid-2025 if this timeline is unmet.
Spot Ethereum ETF Approval May Follow BTC’s Timeline
In his post on X, Johnsson highlighted the SEC’s initial steps towards the spot Bitcoin ETFs. The attorney noted the rapid progression from initial comments on ETF registration statements sent out on September 29, 2023, to the amended S-1 forms within roughly two weeks. The approval processes took place within 90 days, ahead of the January 10 deadline initially set.
SEC simultaneously issued initial comment letters on issuers’ BTC spot ETF reg statements on 9/29/2023. We saw amended S-1s show up about 2 weeks later… so about 90 days ahead of the Jan 10 deadline. We’re now 90 days out from May 23rd deadline for ETH spot ETFs. pic.twitter.com/BnVWLTIcZz
— Scott Johnsson (@SGJohnsson) February 23, 2024
As the May 23 deadline for spot Ethereum ETFs approaches, Johnsson sees a potential repeat, which could accelerate the process as the foundation is laid.
However, he is cautious the SEC might change its approach and not follow the BTC timeline, including delaying the S-1 comment phase past the 19b-4 approval.
Meanwhile, Bloomberg ETF Analyst James Seyffart argues that the SEC does not need as much time to reach approval. Seyffart points out that while Ethereum and Bitcoin differ, the groundwork laid by the latter’s regulatory journey can significantly streamline the former’s path.
Johnsson concurs with this perspective, saying that the approval process for Ethereum could be faster this time, hence the current silence from the SEC. Additionally, he acknowledges that while he expects the SEC to provide comments before moving forward with 19b-4 approval, such a step is not assured.
Ethereum ETF Approval ‘Inevitable’
The potential approval of a spot Ethereum ETF has brought much interest from the cryptocurrency community and industry observers. Companies such as Fidelity, Invesco, and BlackRock have submitted applications for such financial products.
While Steven McClurg, the Chief Investment Officer at Valkyrie, recently said that he sees a delay in approval past May 2024, he added that it would still come. McClurg noted that there are intricacies of disclosures for an Ethereum product, which will likely be a time-intensive process for the SEC. Hence, it could take another year for the Ethereum ETF approval.
On the other hand, Ripple CEO Brad Garlinghouse mentioned that the likelihood of approval of non-Bitcoin crypto ETFs was high. He added that many ETFs will inevitably be around different tokens over time.
As for the Ethereum price, the crypto is trading at $3,090, up 2% in the last 24 hours and 6% over the last week.
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