The U.S. Securities and Exchange Commission (SEC) has pushed back the launch of spot Ether exchange-traded funds (ETFs) that was initially set to take place in early July. The delay was prompted by the SEC’s request for additional time to review the S-1 forms submitted by the entities hoping to issue the ETFs. The SEC’s feedback on these forms necessitates their resubmission by July 8th, meaning the launch may now not occur until mid-to-late July.
The revisions requested by the SEC for the S-1 forms were said to be relatively minor. According to Nate Geraci, President of trading firm ETF Store, the SEC is usually able to clear such issuers within 14 to 21 days after these revisions. Although the exact timeline has not been clarified, it is likely that the launch could happen sometime this summer.
Earlier predictions by Eric Balchunas, a Bloomberg ETF analyst, had suggested a potential ETF launch window in early July, largely based on the absence of substantial remarks from the SEC staff regarding the applicants’ S-1 filings.
The S-1 form submission and approval is the second phase of a two-part procedure needed before these ETFs can officially launch. The first phase involved the approval of a 19b-4 form, which was passed in May, with eight ETF bidders having their forms approved on May 23rd.
The SEC’s Chairman, Gary Gensler, recently confirmed the ongoing progress of the spot Ether ETF approval process. Furthermore, the SEC has also approved a new rule allowing major entities such as BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares and Invesco to take part in the process. Some issuers, like VanEck, have already filed 8-A forms to prepare for listing on exchanges by July 8th.
Despite this, Gensler cautioned that the listing process could stretch into months and might not complete before September. He believes that the timeline for Ether ETF listings depends largely on the swiftness of the applicants’ responses.