The launch of Ethereum (ETH) exchange-traded funds (ETFs) in the United States, originally scheduled for July 2, has been delayed by the U.S. Securities and Exchange Commission (SEC).
According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the SEC has given itself more time to return S-1 forms filed by Ether ETF issuers, postponing the launch until mid-July or later.
SEC postpones the process
The SEC commented on the Forms S-1 and requested new filings by July 8. According to Balchunas, this new deadline means that the launch of Ethereum ETFs could be delayed until mid to late July.
ETF Store president Nate Geraci noted that the latest round of S-1 reviews was of minimal significance, and predicted that the SEC would clear issuers for listing within 14 to 21 days. The SEC has indicated that ETFs are feasible to launch this summer, although the specific timetable is still unknown.
In early June, Balchunas predicted an ETF launch in early July in light of the SEC staff’s lack of meaningful comments on the S-1 documents filed by the ETF applicants.
Ethereum ETFs will undergo a two-step process
The clearance of the S-1 filings is the second part of a two-phase process required for the ETFs to go live. The first part involved the approval of issuers’ Forms 19b-4 in May. The SEC cleared Forms 19b-4 from eight ETF offerors on May 23.
Unlike Forms 19b-4, the Forms S-1 are not time-bound, so issuers were dependent on the SEC’s timeline for review and approval.
On June 26, SEC Chairman Gary Gensler stated that the approval process for Ethereum ETFs is progressing smoothly.
The SEC has authorized a rule change whereby major issuers such as BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco can provide input on the procedure. Additionally, issuers such as VanEck have filed Forms 8-A in preparation for listing before July 8.
However, Gensler said the listing of Ethereum ETFs on exchanges may take months and may not occur until September. He noted that the procedure is completely dependent on the reaction times of the Ether ETF issuers.
Market responses
While some cryptocurrency industry players are optimistic about a quick approval following the amendments to the S-1 forms, others doubt that this delay indicates more serious regulatory problems. Analysts believe that final approval could come two to three weeks after the filing of the updated forms, but the exact date remains unknown. Cryptocurrency investors, who had originally anticipated an early July approval, must now reconsider their short-term approaches.
Moreover, the consequences of this delay go far beyond the simple launch of the ETF. In fact, it is a crucial test for the entire cryptocurrency sector. Once validated, Ethereum ETFs could not only gain institutional backing but transform the cryptocurrency investment landscape, opening up new opportunities for investors and consolidating Ethereum’s position in the global financial market.
