The Possibility of US Spot Ethereum ETFs Launching in June: An Analysis

The Possibility of US Spot Ethereum ETFs Launching in June: An Analysis

Analyst Eric Balchunas from Bloomberg has suggested that US spot Ethereum ETFs could potentially launch in the month of June. He believes that there is a legitimate chance that these ETFs will be available by the end of June, although the possibility of a mid-June launch is considered unlikely at this point. The latest date that Balchunas anticipates for the launch would be July 4th. These expectations are largely based on the timing of the issuers’ S-1 statements.

Both BlackRock and Grayscale have made recent filings and updates related to their ETF products. BlackRock’s S-1 amendment on May 29 did not include crucial information such as fees, leading Balchunas to consider it as a nearly final version of the filing. On the other hand, Grayscale submitted an S-3 amendment on May 30, which clearly prohibits staking in their fund. These filings are seen as essential steps before the ETFs can be launched for trading.

SEC’s Role and Political Motivations

Eric Balchunas also considers the Securities and Exchange Commission’s (SEC) potential political motivations for the launch of these ETFs. He argues that the SEC may not have a real reason to rush the approval process, as the initial approvals have already met the political goal of not appearing anti-crypto. Other industry experts, including Cathie Wood and David Han, have echoed similar sentiments about the SEC’s approval decisions being politically driven.

The SEC has requested draft S-1 filings from other applicants by May 31, after which they will issue their first round of comments. Applicants will then have the opportunity to submit further amendments in response to the SEC’s feedback. As of now, all Ethereum issuers have submitted their S-1 or S-3 registration statements. However, apart from BlackRock and Grayscale, only VanEck has made amendments following the initial approvals for exchange rule changes ETFs on May 23. Balchunas’ colleague, James Seyffart, believes that the SEC will likely take weeks or even months to approve the S-1 statements.

While there is a possibility of US spot Ethereum ETFs launching in June, the exact timeline remains uncertain. The SEC’s role in the approval process and potential political motivations add another layer of complexity to the situation. Industry experts continue to closely monitor the developments, awaiting further updates on the launch of these highly anticipated ETF products.


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