The US Securities and Exchange Commission (SEC) has reportedly asked companies issuing spot Ethereum ETFs to submit draft S-1 forms by the end of this week, thus taking an important step in the approval process for these financial products.

The request follows the May 23 approval of forms 19b-4, a critical milestone in the process. The only remaining step before trading can begin is for S-1 forms to come into force. However, due to the SEC’s last-minute change of direction, these forms could not be prepared in advance.

The SEC will submit its first round of comments after receiving the draft S-1 filings, prompting further changes, according to people familiar with the matter. This shows that the process is continuing well despite the initial delay.

On the day the ETFs were approved, VanEck responded quickly by filing a modified version of its S-1 form. Shortly after, on May 30, BlackRock followed suit, detailing that its ETF would be funded with $10 million.

However, one source said that while details of seed investments are fairly straightforward for an issuer to include, other aspects of the forms may take longer to cover. They expect their S-1 forms to go through at least two more rounds of draft filings before they are ready.

Analysts estimate that S-1s will take several weeks to complete, and could take several months if the process moves slowly. But some traders argue that the delay could be a good thing, allowing for more thorough scrutiny and potentially leading to a more stable market once trading resumes.

*This is not investment advice.

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