The U.S. Securities and Exchange Commission (SEC) has delayed the launch of spot Ethereum ETFs, initially expected in early July, to mid-July or later. Bloomberg ETF analysts Eric Balchunas and James Seyffart reported that the SEC requested resubmissions of S-1 forms by July 8. This delay could push the launch of these ETFs to mid-to-late July, impacting the timeline anticipated by the market.
Nate Geraci, president of ETF Store, noted that the latest round of revisions on the S-1 forms was minor, and he predicted that the SEC would approve the issuers for trading within 14 to 21 days after resubmission. However, the exact timeline remains uncertain, with SEC Chair Gary Gensler indicating that the listing of these ETFs on stock exchanges might take months, potentially extending into September.
This development comes after the SEC approved the 19b-4 forms from eight major ETF issuers, including BlackRock, Fidelity, 21Shares, Grayscale, and VanEck, on May 23. The S-1 forms, unlike the 19b-4 forms, do not have a specific deadline, leaving issuers dependent on the SEC’s review and approval timeline.
The delay highlights the cautious approach the SEC is taking towards approving these new financial products, reflecting the complexity and regulatory scrutiny involved in launching cryptocurrency-based ETFs. The market response to these delays will be critical in understanding the future trajectory of Ethereum ETFs and their impact on the broader crypto market.
As the process progresses, the anticipation and reactions within the crypto community will likely shape the discussions around regulatory practices and the integration of digital assets into traditional financial systems.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
