Spot Ethereum ETF Launch Delayed by SEC Comments
The launch of US-based spot ether exchange-traded funds (ETFs), which many had expected until July 2, has been delayed by the US Securities and Exchange Commission (SEC).
According to Bloomberg ETF analysts Eric Balchunas and James Seifert, the SEC has taken more time to return S-1 forms filed by upcoming space ether (ETH) ETF issuers, pushing for a mid-July launch or later.
SEC comments delay process
The SEC commented on the S-1 forms and requested a re-filing on July 8. According to Balchunas, this new timeline means that the launch of Ethereum ETFs could be extended from mid-July to the end of July.
EFF Store President Nate Geraci said the latest S-1 revisions were relatively minor and predicted the SEC would clear the issuers in 14-21 days. Although the exact timeline is uncertain, the SEC has indicated that it could begin this summer.
In early June, Balchunas predicted an early July ETF launch window due to the lack of significant feedback from SEC staff on ETF applicants' S-1 filings.
A two-step process for Ethereum ETFs
Approval of the S-1 forms is the second part of the two-step process required for ETFs to go live. The first part involves approving the issuers' 19b-4 forms in May. The SEC approved 19b-4 filings from eight ETF bidders on May 23.
Unlike 19b-4 forms, S-1 forms are not bound by a specific deadline, leaving issuers to rely on the SEC's timeline for review and approval.
Related: 21Shares Files Application for Spot Solana ETF
On June 26, SEC Chairman Gary Gensler confirmed that the approval process for the SpaceEther ETF is proceeding smoothly.
The SEC approved a rule change that would allow major issuers including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares and Invesco to participate in the process. In addition, issuers such as VanEck filed Form 8-A for listing on exchanges by July 8.
However, Gensler said listing Ether ETFs on stock exchanges could take months and may not happen until September. Gensler put the details of the Ether ETF on applicants and said the process is entirely dependent on their response time.
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