Ethereum
SEC Delays Approval of Ethereum ETF, What It Means for Investors
The SEC has taken an unexpected step in the ongoing ETH ETF approval process by returning S-1 forms to its issuers. spot Ethereum ETFs which experts like Bloomberg senior ETF analyst Eric Balchunas had estimated would launch next week, has been further delayed by the US SEC as it released some comments on the S-1 form filed by spot Ethereum ETF issuers.
SEC Returns Forms S-1 for Minor Changes
The forms were returned with a request for minor changes and issuers were asked to resolve the identified issues and resubmit the updated forms, suggesting that final approval of Ethereum Spot ETFs may be delayed and that at least one more round of deposits will be required before they begin trading.
In its latest comments, the SEC required issuers of Ethereum spot ETFs to submit Forms S-1 by July 8.
S-1 Forms form a crucial part of the two-step process that ETFs must follow before becoming operational. The first step toward approval of Ethereum spot ETFs was the approval of issuers’ Form 19b-4s in May, which was granted by the SEC within the originally set deadlines. However, no specific deadline has been set for Form S-1s and issuers are dependent on the SEC’s response time.
SEC Hints at Ethereum ETF Launch This Summer
Many developments have suggested that spot ETH ETFs could begin trading by July 4, which now seems unrealistic. The chairman of the SEC had recently indicated that approval of spot Ethereum ETFs could come this summer, but avoided giving a specific date, which left issuers and investors in uncertainty. Minor changes requested by the SEC might not signal any major issues, Forms S-1s must be amended to achieve expected compliance.
The President recently confirmed that the Approval process for Ethereum spot ETF is running well after issuers such as BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares and Invesco.
Investors Concerned About SEC Decision
The SEC’s decision was criticized by market participants as Ethereum and the broader crypto market are already trading under selling pressure. ETH Price has fallen by more than 1% in the last 24 hours and its trading volume has also decreased by 8% in the last 24 hours, indicating a decrease in interest among traders.
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