Spot Ethereum ETF Launch Delayed By SEC

The SEC requested resubmissions of the S-1 forms by July 8, which could potentially postpone the launch of spot Ether ETFs until mid-to-late July

The U.S. Securities and Exchange Commission (SEC) has postponed the launch of spot Ether exchange-traded funds (ETFs) based in the United States, which was anticipated to occur as early as July 2.

The launch of the spot Ether ETH$3,388 ETF has been postponed until mid-July or later, as the SEC has taken an extended period to return the S-1 forms submitted by potential issuers, as reported by Bloomberg ETF analysts Eric Balchunas and James Seyffart.

The procedure is delayed by the SEC’s
The SEC requested that the S-1 forms be resubmitted by July 8 and provided feedback. Balchunas has indicated that the launch of the spot Ethereum ETFs may be delayed until mid-to-late July due to this new timeline.

Nate Geraci, president of ETF Store, observed that the most recent round of S-1 revisions was relatively minimal and predicted that the SEC would approve issuers for trading within 14–21 days. The SEC has suggested that the launch could occur this summer, even though the exact timeline is still uncertain.

Earlier in June, Balchunas anticipated an early July ETF launch window due to the absence of substantial commentary from SEC staff regarding the S-1 filings of the ETF applicants.

Ethereum ETFs undergo a two-step process.
The approval of the S-1 forms is the second stage in a two-step process necessary for the ETFs to be operational. The initial phase involved certifying the issuers’ 19b-4 forms in May. On May 23, the Securities and Exchange Commission (SEC) authorized 19b-4 filings from eight ETF bidders.

The S-1 forms are not subject to a specific deadline, unlike the 19b-4 forms, which means that issuers must rely on the SEC’s timeline for review and approval.

The SEC Chair, Gary Gensler, confirmed on June 26 that the approval procedure for spot Ether ETFs is proceeding smoothly.

The SEC has approved a rule change enabling significant issuers, such as BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco, to participate in the process. Furthermore, issuers such as VanEck have submitted 8-A forms in anticipation of their listing on exchanges by July 8.

Nevertheless, Gensler asserted that listing spot Ether ETFs on stock exchanges could take months and may not occur until September. Gensler attributed the responsibility for the Ether ETF listings to the applicants and asserted that the process is wholly contingent upon their response times.