SEC Delays Spot Ethereum ETF Launch to Mid-July, Extending Approval Process

• The Securities and Exchange Commission delays the spot Ethereum ETF launch, pushing the timeline to mid-July or later.
• The SEC requests that S-1 forms be resubmitted by July 8, further extending the launch timeline for spot Ethereum ETFs.
• Despite minor S-1 revisions, SEC approval remains ambiguous, with a potential summer launch for spot Ethereum ETFs.

The United States Securities and Exchange Commission (SEC) has delayed the launch of spot Ethereum ETFs, initially anticipated by market experts to occur next week. This unexpected delay has pushed the timeline to mid-July or later, leaving investors and Ethereum holders in a state of uncertainty.

Bloomberg ETF analyst Eric Balchunas disclosed that the SEC needed additional time to review and return the S-1 forms submitted by prospective Ethereum ETF issuers. These forms are crucial for the approval process, and their delayed return has shifted the expected launch window. The SEC has requested resubmissions of these forms by July 8, further extending the timeline.

Nate Geraci, President of ETFstore, noted that the last round of S-1 revisions was relatively minor. He had anticipated that the SEC would clear issuers for trading within 14 to 21 days. Despite this expectation, the precise timeline remains ambiguous, although the SEC has suggested a potential launch this summer.

Earlier predictions had indicated an early July launch for the ETFs based on minimal feedback from SEC staff regarding the S-1 filings. The approval of these forms is the second step in a two-part process required for the ETFs to go live. The first step involved the approval of the issuers’ 19b-4 forms, which was completed in May. The SEC had approved 19b-4 filings from eight ETF bidders on May 23.

On June 26, SEC Chair Gary Gensler confirmed that the approval process for the spot Ethereum ETFs is moving forward without major issues. Additionally, the SEC has greenlit a rule change enabling significant issuers such as BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco to engage in this process. Some issuers, like VanEck, have even taken steps further by filing Form 8-A, gearing up for potential exchange listings by July 8.

As the SEC continues its review, the market remains on edge, with investors eagerly awaiting the official launch of spot Ethereum ETFs. This delay underscores the complexities and regulatory hurdles involved in bringing innovative financial products to market, reflecting the SEC’s cautious approach to overseeing new investment vehicles.