The Ethereum ETF Launch Faces Another Delay The Waiting Game Persists
Key Points of Interest
The Securities and Exchange Commission (SEC) has thrown a curveball into the process of approving Ethereum ETFs by returning S-1 forms to issuers. Originally slated for launch next week, these spot Ethereum ETFs will now face delays as issuers must make revisions to comply with SEC feedback.
A Bump in the Road for Approval
Senior ETF analyst Eric Balchunas of Bloomberg had projected the imminent launch of spot Ethereum ETFs for next week. However, recent feedback from the SEC has necessitated adjustments to the timelines. The returned forms include requests for minor revisions, requiring issuers to address these comments and resubmit updated documents.
This implies a potential delay in final approval, with expectations of at least one more round of submissions before these ETFs can begin trading.
Revised Deadline: July 8
In its latest communication, the SEC has set a deadline of July 8 for the revised S-1 forms. The S-1 form is crucial in the two-step process ETFs must undergo before becoming operational. While the initial stage—approval of the issuers’ 19b-4 forms—was completed in May, the review timeline for S-1 forms remains indefinite.
Impact on Expected Trading Commencement
Previously, there were indications that spot ETH ETFs could commence trading by July 4th. However, recent developments suggest this timeline is no longer feasible. Despite SEC Chair Gary Gensler’s recent hint that approval could come this summer, no specific date was provided, leaving both issuers and investors uncertain.
The SEC’s request for minor changes to the S-1 forms indicates that while major issues are absent, these adjustments are necessary to meet regulatory standards.
Market Reaction and Outlook
The SEC’s decision has sparked criticism among market participants, particularly as Ethereum and the broader cryptocurrency market face downward pressure. ETH has seen a decline of over 1% in the past 24 hours, with trading volume down by 8% during the same period, indicating reduced interest among traders.
Looking Ahead
Despite current setbacks, the approval process for spot Ethereum ETFs continues. Major issuers such as BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco are actively working to fulfill SEC requirements. The market awaits further updates on the potential launch dates for these eagerly anticipated ETFs.
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Tags: Ethereum