US SEC Delays Anticipated Ethereum ETF Launch to Mid-to-Late July
Summary:
The expected launch of Ethereum Exchange-Trade Funds (ETFs) has been postponed by the United States Securities and Exchange Commission (SEC) to mid-to-late July. The delay, attributed to the SEC needing more time to review submitted S-1 forms, leaves Ethereum investors uncertain. While the exact timeline is unclear, a potential summer launch is indicated.
The United States Securities and Exchange Commission (SEC) has postponed the expected launch of Ethereum exchange-traded funds (ETFs), initially set for next week. As per Bloomberg ETF analysts Eric Balchunas and James Seyffart, the delay is linked to the SEC requiring more time to scrutinize the S-1 forms filed by potential Ethereum ETF issuers, which pushes the launch date potentially into mid-to-late July.
The SEC has offered a few remarks on the submitted S-1 forms and requested resubmissions by July 8. This revised timeline suggests that the introduction of Ethereum ETFs might not take place before the second half of July, leaving Ethereum investors in a haze of uncertainty.
Earlier, Nate Geraci, president of ETFstore, noted that recent amendments to the S-1 forms were largely minor, and he anticipated approval from the SEC within two to three weeks. While a definite timeline is yet to be established, a summer launch for the ETFs is indicated by the SEC.
Back in June, a senior analyst from Bloomberg forecasted the ETFs would be introduced in the early part of July. This was based on the absence of significant feedback from the SEC staff on the S-1 forms submitted by the ETF applicants.
For Ethereum ETFs to be brought to life, approval of the S-1 forms is the second step in a two-phase process. Step one involved getting the requisite green light for the 19b-4 forms submitted by the issuers. The 19b-4 forms were approved by the SEC from eight ETF bidders on May 23.
Unlike the 19b-4 forms, there is no set deadline for S-1 forms, leaving their approval dependent on the SEC's review schedule.
Regarding the approval process for Ethereum ETFs, SEC Chair Gary Gensler confirmed on June 26 that progress was ongoing. A rule change authorizing key issuers such as BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco to take part has been approved by the SEC. Additionally, issuers like VanEck have filed Form 8-A in anticipation of being listed on exchanges by July 8.
However, Gensler has previously suggested the listing of Ether ETFs on stock exchanges could take several months, potentially not happening until September. According to him, the process's pace largely depends on the applicants' response times.
Published At
6/29/2024 2:55:45 PM
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