Consensys Predicts Ethereum ETF Approval Within Days

• Blockchain startup Consensys has predicted that spot Ethereum ETF S-1 registrations will soon be approved.
• Analysts are projecting a an early July approval timeline for trading to commence.

Blockchain software technology company, Consensys has predicted that the SEC could approve S-1 filings for spot Ethereum Exchange Traded Funds (ETFs) in a matter of days. Collin Brown, a renowned blockchain researcher commented that the prediction portends a bullish signal for Ethereum, the second-largest cryptocurrency.

Ethereum ETF approval on the horizon! Consensys predicts SEC could give the green light within days. Bullish signal for $ETH! #Ethereum #ETF

Are your bags filled? pic.twitter.com/aF91qMIXsv

— Collin Brown (@CollinBrownXRP) June 21, 2024

Sentiments for Ethereum’s ETF Approval

Jimmy Ragosa, product manager at Consensys believes the wait for spot Ethereum ETFs trading in the U.S. might be nearing its end. Ragosa’s optimism stems from a recently amended S-1 document, submitted by Bitwise Asset Management to the Securities and Exchange Commission (SEC) on June 18. 

He pointed out that compared to the previous version, Bitwise’s update omits details on the fee structure and initial investment. He added that the bulk of the SEC’s feedback centered around risk factors, legal and regulatory statements, contact information, and the distribution plan. Ragosa, therefore, projects an imminent approval from the SEC, based on the areas requiring revision.

This optimistic outlook aligns with recent comments from Bloomberg ETF analyst Eric Balchunas. He confirmed that the SEC’s feedback to prospective Ethereum ETF issuers earlier this month was “pretty light,” focusing on minor revisions. 

Balchunas even revised his initial prediction for the launch date, moving it up from July 4 to July 2 based on the expedited S-1 approval timeline. Last month, the SEC approved eight 19b-4 documents from exchanges requesting to list Ethereum ETFs, as previously reported by Crypto News Flash. With that hurdle cleared, the S-1 approval stands as the final regulatory step to Ethereum ETF trading in the US.

Meanwhile, VanEck is another investment manager who believes approvals for spot Ethereum ETFs could happen in the coming weeks. As previously reported by Crypto News Flash, VanEck’s Matthew Sigel says the firm is accumulating Ethereum in anticipation of the launch.

SEC Concludes Ethereum Sales on Consensys

Adding to the positive sentiment surrounding Ethereum ETFs is the recent conclusion of the SEC’s investigation into Consensys’ ETH sales. The investigation, which focused on whether these sales constituted security offerings, cleared the way for Ethereum by not recommending any enforcement action. 

Consensys disclosed in an earlier report shared by Crypto News Flash that the victory follows a battle of regulatory challenges and a lawsuit filed by the firm. Notably, this development eliminates a potential hurdle for Ethereum ETF approval.

Despite this victory, the SEC appears not to be giving up on its crypto enforcement actions. In response to Consensys victory, the SEC’s correspondence gave a disclaimer that the closure of the investigation should not be interpreted as an exoneration.

ETH, the native digital asset of Ethereum appears to be reacting negatively to these developments. At press time, ETH is trading at $3,481, demonstrating a 3% decrease over 24 hours. However, the trading volume increased by 11% to $15.9 billion, demonstrating renewed interest from investors.