- The SEC has requested ETH ETF issuers to file their S-1 paperwork by Friday.
- JPMorgan analysts mentioned they don't anticipate any large inflows into the spot ETH ETF.
- JPMorgan mentioned that ETH ETFs are now not engaging after staking is phased out.
The U.S. Securities and Alternate Fee (SEC) has requested all corporations which have utilized for a spot Ethereum (ETH) exchange-traded fund (ETF) to submit amended S-1 purposes by Friday.
The request got here after regulators unexpectedly authorized spot ETH ETF 19b-4 filings by VanEck, BlackRock, Grayscale and different candidates on Could 23. However the corporations' preliminary S-1 filings didn't match up with the SEC's expectations, resulting in a last-minute scramble to regulate the filings.
Regardless of the setback, the submitting course of is transferring ahead: The asset supervisor has been advised to resubmit its S-1 software by Friday, after which regulators will subject their first feedback and encourage additional amendments.
In the meantime, a group of JP Morgan analysts led by Nikolaos Panigirtzoglou has printed a report predicting that “preliminary market response to the launch of a spot Ethereum ETF is prone to be destructive.”
The 25-page “Circulation and Liquidity” report additionally notes that demand for a spot ETH ETF will likely be a fraction of the demand seen for a spot Bitcoin (BTC) ETF, which BlackRock and Constancy made historical past by buying $10 billion in property beneath administration (AUM) in just some weeks.
JP Morgan analysts attribute Bitcoin's success to first-mover benefit, which allowed it to seize early demand for the crypto asset. Additionally they notice that April's halving occasion “catalyzed additional demand for a spot Bitcoin ETF.” Moreover, ETF issuers have eliminated staking from their filings, doubtlessly making them much less engaging to traders.
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