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Despite the United States Securities and Exchange Commission (SEC) granting approval for a spot Ethereum ETF, the cryptocurrency world is still awaiting S-1 approval to usher in trading of the asset. Per a source in communication with the SEC, some comments are now anticipated this week. Nate Geraci, an analyst, in a post on X said that at least one of the several prospective issuers that filed an application will receive comments from the regulatory authority this week.

Spot ETH ETF regulatory delays and issuer expectations

Notably, since the May 31 deadline passed to submit the first draft of S-1 registrations, spot Ethereum ETF issuers have anticipated that the regulatory body would provide an update on the status of their application. To date, nothing definite has come from the Gary Gensler-led commission.

Interestingly, issuers were optimistic that the SEC would provide comments on the drafts as of June 7. However, two of the issuers categorically stated that nothing was communicated from the SEC to them. The only communication from SEC Chairman Gary Gensler at a recent appearance on CNBC was ambiguous.

The back and forth of the SEC prior to granting the 19b-4 approval led some issuers to drop out of the race. Notable among those that pulled out was Cathie Wood’s Ark Invest. The asset management firm, despite filing documents with the SEC in partnership with 21Shares to become an Ethereum ETF issuer, later withdrew.

Ark Invest, in an official statement, noted that it continues to believe in Ethereum’s “transformative potential and long-term value.” However, Ark will no longer pursue an Ether ETF product.

Stakeholders' concerns about spot Ethereum ETF

As issuers anticipate clear communication from the regulatory body, some stakeholders are entertaining doubt as to the potential of the spot Ethereum ETF product. Global banking firm JPMorgan believes that these products could attract a much lower share of inflows than expected.

Analysts are, however, optimistic that if the SEC gives the green light, the product is likely to perform well in the crypto space.