The US Securities and Exchange Commission (SEC) has asked companies planning to launch spot Ethereum ETFs to submit draft S-1 forms by the week's end. This move marks a crucial step towards the approval of these financial instruments.

Following the approval of forms 19b-4 on May 23, a significant milestone in the process, the final requirement before trading commencement is the activation of the S-1 forms. Unfortunately, due to a sudden change in the SEC's stance, the preparation of these forms could not be undertaken earlier.

Upon receipt of the draft S-1 filings, the SEC will initiate its first wave of comments, leading to further adjustments, as indicated by individuals familiar with the situation. This progress implies that the approval process is advancing smoothly, despite the initial setback.

In response to the ETF approvals, VanEck swiftly submitted a revised version of its S-1 form on the approval day, while BlackRock followed suit on May 30, disclosing a $10 million funding for their ETF.

Although the process of including seed investments in the forms seems straightforward, other sections might require more time for thorough coverage. Anticipating at least two additional rounds of draft filings, the issuers foresee a prolonged process before their S-1 forms reach finalization.

Experts project that the completion of S-1 forms will span several weeks, with a potential extension to months if the process unfolds at a leisurely pace. Despite concerns, some traders argue that the delay could offer benefits by allowing in-depth scrutiny, which could contribute to a more stable market post-resumption of trading.

*Please note that this content does not constitute investment advice.