Companies interested in applying for spot Ethereum (ETH) exchange-traded funds (ETFs) have been instructed by the US Securities and Exchange Commission (SEC) to revise and resubmit their S-1 filings by Friday. This directive follows the approval of the spot ETH ETF 19b-4 filings on May 23, catching many firms off guard. Notably, renowned entities such as VanEck, BlackRock, and Grayscale are part of the applicants' list.

Upon receiving the revised filings, the SEC will review and provide initial feedback, leading to further adjustments. Initial market reactions to the debut of spot Ethereum ETFs are anticipated to be unfavorable, as indicated in a JPMorgan report.

The report 'Flows & Liquidity' forecasts higher demand for spot Bitcoin (BTC) ETFs compared to spot Ethereum ETFs. This preference is attributed to the proven success of Bitcoin ETFs, with BlackRock and Fidelity amassing $10 billion in Assets Under Management (AUM) within weeks.

Analysts attribute Bitcoin's triumph to its early adoption in meeting the demand for cryptocurrency products, thanks to its pioneering status. The Bitcoin halving event in April also bolstered demand. Similarly, the removal of staking from ETF filings may reduce their attractiveness to potential investors compared to other cryptocurrency options.

The approval of spot ETH ETF filings by the SEC marks a significant milestone for Ethereum, while posing new challenges for asset management firms seeking regulatory compliance.

As the deadline nears, companies are hurrying to meet the SEC's specifications, with market observers eagerly anticipating the launch of spot ETH ETFs. The success of this launch will be pivotal in determining Ethereum's potential success in the ETF market, matching the achievements of Bitcoin.

The market is closely monitoring the developments around Ethereum ETFs, pondering whether the outcome will lead to a bullish or bearish market sentiment.