The U.S. Securities and Exchange Commission has begun discussions around S-1 registration statements with prospective Ethereum ETF issuers, according to a source.

“Basically, it's just starting,” said a high-ranking member at an issuer when asked about conversations relating to S-1 forms. “It feels a little like [the Division of Investment Management] was more-or-less caught off-guard by the change of tune. So, just starting.”

The source added that they don’t expect the progress toward an Ethereum ETF to get scrapped but remained cautious.

For the Ethereum ETFs to be approved, the SEC must approve the 19b-4 forms — which was done in one omnibus order for the Bitcoin ETFs — and then the S-1 registration statements must become effective. Only then can trading begin.

Ahead of each …