- SEC approves Ethereum ETF's 19b-4 listing, but pending S-1 approval
- Bitcoin ETFs are seeing massive inflows, while Ethereum is also expected to see millions of dollars in inflows.
After much speculation surrounding the approval of Spot Ethereum [ETH] As for ETFs, the SEC gave the green light to these financial instruments a few days ago.
But it's important to note here that only the ETH ETF's 19b-4 listing application has been approved, not the all-important S-1 registration statement.
What is behind the split?
The split approval has raised questions, with some suggesting potential political ramifications rather than careful consideration of the ETF proposal. Sharing similar thoughts, Bitwise CIO Matt Hogan said in a recent episode of the “Bankless” podcast:
“I've never seen anyone go from not expecting approval to expecting approval so quickly, practically overnight. So for something like this to never happen again means something shocking was going on here.”
Bloomberg Intelligence research analyst James Seifert echoed the sentiment, adding:
Source: James Seifert/X
Asked about next steps regarding the ETF, Hogan said:
“The process from where we are now to getting these ETFs listed is such that issuers will have to go back and forth a lot with their investment management departments about the content of this document.”
He emphasized that while the SEC's 19b-4 approval is a major step forward, the full launch of the ETH ETF is dependent on approval of the S-1 document, which could take anywhere from a few weeks to a few months.
Impact on ETH price
Needless to say, these developments led to significant fluctuations in Ethereum's market cap, initially causing the charts to fall. However, at the time of writing, ETH has recovered to $3,752, up 1.65% in the past 24 hours. With Bitcoin surpassing $69,000, the overall market sentiment has also become bullish.
Bitwise CIO also provided insight into the issue, stating:
“There is no new supply, net supply is effectively zero, which means this new demand shock means we are having to buy Ethereum from people who don’t need to sell it, which is extremely bullish.”
BTC inflow and ETH inflow
Regarding spot bitcoin [BTC] The ETF has been a cause for concern as it has seen phenomenal inflows since its debut on January 11. In fact, total inflows into the Bitcoin ETF reached $251.9 million on May 24, according to the latest data from Farside Investors.
Source: Far Side Investors
Will Ethereum achieve similar numbers? Not according to Hogan. He further stated:
“I don't think an Ethereum ETF will rival a Bitcoin ETF, but I do think it will be in the multi-billion dollar range.”
The executive expanded on this point, emphasizing that while Bitcoin is easy to understand due to its simplicity as “digital gold,” Ethereum's role as a platform for decentralized applications is more complex.
However, institutional investors will likely see value in diversifying by investing in both a BTC ETF and an ETH ETF.
