The launch of spot Ethereum ETFs, anticipated by market experts to occur next week, has been delayed by the United States Securities and Exchange Commission (SEC).
According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the SEC took additional time to return the S-1 forms submitted by prospective Ethereum ETF issuers, pushing the launch to mid-July or later.
The delay
The SEC issued a few comments on the S-1 forms submitted by the spot Ethereum ETF issuers and has requested resubmissions by July 8. According to Balchunas, this new timeline means the launch of the spot Ethereum ETFs could be postponed until mid-to-late July.
The delay has left Ethereum holders in a state of uncertainty. ETFstore President Nate Geraci noted earlier that the last round of S-1 revisions was relatively minor and anticipated that the SEC would clear issuers for trading within 14-21 days. Although the exact timeline remains uncertain, the SEC has indicated a potential launch this summer.
Earlier in June, the senior Bloomberg analyst predicted an early July ETF launch window based on a lack of significant commentary from SEC staff on the ETF applicants’ S-1 filings.
Two-step process for Ethereum ETFs
The approval of the S-1 forms is the second part of a two-step process required for the ETFs to go live. The first part involved the approval of the issuers’ 19b-4 forms in May, ahead of the deadline. The SEC approved 19b-4 filings from eight ETF bidders on May 23.
Unlike the 19b-4 forms, the S-1 forms are not bound to a specific deadline, leaving issuers reliant on the SEC’s timeline for review and approval.
Related: 21Shares files application for spot Solana ETF
On June 26, SEC Chair Gary Gensler confirmed that the approval process for the spot Ethereum ETFs is progressing smoothly.
The SEC has approved a rule change allowing major issuers, including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco, to be involved in this process. Additionally, issuers like VanEck have filed Form 8-A, preparing for listing on exchanges by July 8.
However, SEC Chair Gary Gensler earlier claimed that listing Ether ETFs on stock exchanges could take months and may not happen until September. Gensler put the onus of the Ether ETF listings on the applicants and claimed the process depends entirely on their response times.
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