The United States Securities and Exchange Commission (SEC) has requested all firms that have filed for spot Ethereum (ETH) exchange-traded funds (ETFs) to submit their amended S-1 filings by Friday.

This request comes after the regulator unexpectedly approved the spot ETH ETF 19b-4 filings on May 23 from VanEck, BlackRock, Grayscale, and other applicants. However, the firms’ initial S-1 filings were not aligned with the SEC’s expectations, causing a last-minute scramble to adjust the applications.

Despite this setback, the application process is moving forward. The asset management firms have been instructed to resubmit their S-1 filings by Friday, after which the regulator will issue its first round of comments, prompting further amendments.

Meanwhile, a team of analysts at JPMorgan led by Nikolaos Panigirtzoglou published a report predicting that “the initial market reaction from spot ETH ETFs' approval is likely to be muted due to the lack of institutional inflows, especially from hedge funds.' The report highlights that the removal of staking makes ETH ETFs less attractive to institutional investors, reducing the expected significant inflows into ETH ETFs.

The SEC’s deadline for revised S-1 filings has created a sense of urgency among the ETH ETF applicants as they aim to realign their applications with the SEC’s requirements in a timely manner to avoid rejection. JPMorgan’s analysis suggests that the current market conditions may not be conducive for robust inflows into spot ETH ETFs, emphasizing the need for firms to carefully assess the changing landscape to attract institutional interest and ensure the viability of ETH ETFs in the market.