After the US launched a Bitcoin spot ETF in January, an Ethereum spot ETF is expected to be listed in the summer. Considering that the risk of an Ethereum spot ETF is “significantly” higher than that of a Bitcoin spot ETF, regulatory approval will take longer.
Following the listing of Bitcoin spot ETFs, will Ethereum spot ETFs come again?
According to the latest news from Galaxy Digital, Ethereum spot ETFs are expected to pass a key regulatory approval this week. If approved, they may be listed and traded on exchanges as soon as July or August.
Before an Ethereum spot ETF can be traded, regulators must approve two types of documents: Form 19b-4, namely the Proposed Rule Change Form (Proposed Rule Change Forms) and the S-1 Registration Statement (S-1 registration statements).
According to Galaxy Digital, there may be a gap of several months between approval and listing of an Ethereum spot ETF, which is in stark contrast to the faster listing speed of Bitcoin spot ETFs.
As early as January 4 of this year, the US Securities and Exchange Commission (SEC) approved several forms 19b-4 relating to Bitcoin spot ETFs. Bitcoin spot ETFs were issued a few days later, and the interval between before and after was extremely short.
Galaxy Digital notes that there is a long time interval between approval and issuance because the risk of Ethereum spot ETFs is “significantly” higher than that of Bitcoin spot ETFs, which may extend the time for regulators to approve these funds. Due to the variety of decentralized applications (dapps) built on the Ethereum network, the process of approving and listing these ETFs may also take longer.
Researchers say these decentralized apps “add a range of information that may need to be disclosed,” which could make it more difficult for Ethereum spot ETFs to get final regulatory approval to begin trading.
Editor/Somer