Setback for Ethereum ETFs Another hurdle before approval
The U.S. Securities and Exchange Commission (SEC) has sent back S-1 forms to potential Ethereum ETF issuers with comments, requiring them to make additional filings before approval, according to a report by The Block on June 29. The SEC has asked issuers to address the comments and resubmit their forms by July 8. This means that the approval process will take longer than initially expected, and the possibility of Ethereum ETFs going live by July 4 is no longer feasible.
A source at one of the issuers stated that the comments in the returned forms were minor. However, this is not the final filing, as at least one more round will be needed before the ETFs can begin trading.
SEC Chair Gary Gensler had previously mentioned that Ethereum ETF approvals could happen “sometime over the course of this summer,” but no specific timeline has been provided. This lack of clarity has left issuers uncertain about when their ETFs will be launched. Earlier reports had suggested a potential launch date of July 4, but this latest development has dashed those expectations. Issuers will only have a clearer idea once the SEC sets a deadline for the final filings.
The S-1 forms are part of a two-step process for ETFs to go live. The first step, which involved the approval of 19b-4 forms, was completed in May. However, unlike the 19b-4 forms, there is no specific deadline for the S-1 forms. Therefore, the approval timeline depends on how quickly the SEC can review and respond to the submitted forms. The approval process has been described as a “winding path,” highlighting its complexity and unpredictability.
As the SEC continues to review the S-1 forms, both issuers and investors are eagerly awaiting the next steps. The additional round of filings will inevitably delay the launch date for Ethereum ETFs. Despite the delay, the ongoing dialogue between the SEC and ETF issuers indicates progress towards eventual approval. However, the exact timeline remains uncertain, leaving the crypto and investment communities eagerly anticipating further developments.
