Ethereum ETF Launch Delayed by SEC Until Mid-to-Late July, Analysts Say

• The anticipated launch of Ethereum exchange-traded funds (ETFs) on July 2 has been postponed by the U.S. Securities and Exchange Commission (SEC).
• According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the SEC decided to take additional time to review the S-1 forms submitted by spot Ether ETF issuers, delaying the launch to a later date.
• SEC’s comments have introduced delays, requesting a re-submission of the S-1 forms by July 8, indicating a potential launch in mid or late July.

Ethereum ETF launch postponed by SEC: What investors need to know about the delayed launch and its impact.

SEC Delays Ethereum ETF Launch

The U.S. Securities and Exchange Commission (SEC) has delayed the much-anticipated launch of Ethereum exchange-traded funds (ETFs). Initially expected to debut on July 2, the launch has now been postponed. Bloomberg ETF analysts Eric Balchunas and James Seyffart reported that the SEC requested additional review time, postponing the approval of S-1 forms submitted by Ether ETF issuers.

Commentary and Resubmission Requests

The SEC provided feedback on the S-1 forms and asked issuers to resubmit their forms by July 8. According to Balchunas, this new deadline implies that the launch of spot Ethereum ETFs could be deferred to mid or late July. Nate Geraci, president of ETF Store, noted that the recent revisions to the S-1 forms were relatively minor. Despite the uncertain timeline, SEC indicated a potential summer launch for these ETFs, projecting a 14-21 day approval period post-resubmission.

Two-Step Approval Process for Ethereum ETFs

The approval of S-1 forms represents the second phase in a two-step process for launching Ethereum ETFs. The first step involved the approval of 19b-4 forms in May, which the SEC approved for eight ETF issuers on May 23. Unlike 19b-4 forms that have set deadlines, S-1 forms depend on the SEC’s review schedule, prolonging the approval process for issuers.

Participating Issuers and Regulatory Amendments

The SEC has approved rule changes allowing major issuers such as BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco to participate in the process. Additionally, issuers like VanEck have completed 8-A forms by July 8, preparing for potential listings. However, SEC Chair Gary Gensler noted that the listing of spot Ether ETFs might take several months and might not occur until September, stressing that the timeline largely depends on the responsiveness of the applicants.

Conclusion

In summary, while the launch of Ethereum ETFs has been delayed, the SEC’s ongoing review suggests a likely launch by mid or late summer. Issuers and potential investors should closely monitor updates and prepare for a possible September launch. As always, readers are advised to conduct their own research and consult with financial advisors before making investment decisions.