Ethereum
Expert Discusses ETH ETF Approval as Deadline for Submission of Revised S-1 Forms Ends Today
As the deadline for Ethereum ETF issuers to resubmit their S-1 forms closes today, the U.S. Securities and Exchange Commission (SEC) is approaching a crucial decision that could potentially classify Ethereum as a commodity.
Last month, the SEC returned initial S-1 filings to issuers with minor comments, a move that suggests a positive outlook for the approval process. The SEC has asked ETF issuers to address those concerns and refile by July 8.
These forms are part of a two-tier application process, following the Advance Approval of Forms 19b-4While there is no fixed timeline for S-1 approvals, issuers are preparing for a quick turnaround, anticipating a final green light from the SEC.
The SEC is set to approve ETH as a commodity soon. We spoke with Konstantin Shulga, CEO and co-founder of Jewelry marketswho proposed his analysis.
Was the ETH approval a bit rushed? Many institutional players are scrambling to put the right infrastructure in place before July 8?
“It typically takes 6 to 9 months for innovative financial products to be integrated into financial firms’ product portfolios and adopted on a large scale. This process requires significant time and resources, including training sessions, IT and operational system updates, and sales process adjustments.”
“The adoption process follows a pattern of pioneers, adopters, and mass users, with the key factor being the legitimization of ETH as a mainstream asset rather than the timing of adoption.”
“Going forward, competition will drive infrastructure development to meet growing demand, as evidenced by the record flows into the BTC ETF following its approval.”
Can ETH be considered a security? This topic has been the subject of much debate in recent months, with differences of opinion at all levels?
“The rise of cryptocurrencies as a unique and highly sought-after asset class poses a significant challenge for financial regulators, who are struggling to determine how to classify these digital assets into established classifications such as commodities, currencies and securities.”
“Divergent views among regulators regarding the classification of assets such as ETH have led to ongoing challenges in oversight and regulation. Despite the ongoing debates, the key point is that over the past decade, this burgeoning asset class has consistently attracted interest from both retail and institutional investors.”
“So we see the usual trend of regulations lagging behind innovations, and this process of cryptocurrency adoption is one-way. It’s just a matter of time.”
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