• Spot Ethereum ETF launch delayed by SEC until mid-to-late July.

  • SEC’s final decision on Ethereum ETFs expected within three weeks of resubmission.

  • SEC’s detailed review aims to ensure investor protections for Ethereum ETFs.

The anticipated launch of spot Ethereum ETFs in the United States has encountered a delay due to additional scrutiny from the U.S. Securities and Exchange Commission (SEC). Originally projected for early July, the launch is now postponed to mid-to-late July after the SEC sought further amendments to the S-1 forms submitted by issuers.

Extended Review Affects ETF Timeline

Eric Balchunas and James Seyffart, ETF analysts from Bloomberg, reported that the SEC’s extended review period for the S-1 forms could push the debut of these financial products to later in the summer. The SEC has set a new deadline for resubmission by July 8, indicating that the regulatory body is taking a cautious approach in its review process. 

Unfort think we gonna have to push back our over/under till after holiday. Sounds like SEC took extra time to get back to ppl this wk (altho again very light tweaks) and from what I hear next wk is dead bc holiday = July 8th the process resumes and soon after that they’ll launch… https://t.co/0ZQR7yiBLt

— Eric Balchunas (@EricBalchunas) June 28, 2024

Nate Geraci, President of the ETF Store, noted that while the last round of revisions was minor, the SEC’s timeline for final approvals remains uncertain, though he anticipates a decision could come within three weeks from submission.

Moreover, SEC Chair Gary Gensler recently confirmed that the review process is proceeding smoothly, yet the actual listing of these ETFs on stock exchanges could be delayed until September. This timeline depends significantly on the responsiveness of the applicants to SEC feedback.

Progress Amidst Regulatory Challenges

The approval process for Ethereum ETFs includes two crucial steps: the approval of the 19b-4 and S-1 forms. The SEC had previously approved the 19b-4 filings from eight ETF applicants on May 23. However, unlike the 19b-4 forms, the S-1 forms are not subject to specific regulatory deadlines, which places the timing of the ETF launches at the mercy of the SEC’s review schedule.

This careful regulatory examination underscores the SEC’s commitment to ensuring that Ethereum ETFs offer the necessary investor protections before their introduction to the market. As the regulatory landscape for digital assets continues to evolve, this case could set significant precedents for the approval and operation of cryptocurrency-related investment vehicles in the U.S. market.

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