Ethereum
SEC Delays Approval of Ethereum ETF, What It Means for Investors
The SEC has taken an unexpected step in the ongoing approval process of the ETH ETF by returning Forms S-1 to its issuers. spot Ethereum ETFs expected to launch next week by experts like Eric Balchunas, senior ETF analyst at Bloomberg, was further delayed by the US SEC which issued some comments on the Form S-1 submitted by Ethereum ETF issuers in cash.
SEC Returns S-1 Forms for Minor Changes
The forms were returned with a request for minor changes and issuers were asked to address the identified issues and resubmit the updated forms, suggesting that final approval of spot Ethereum ETFs could be delayed and that at least one more round of filings will be required before they begin trading.
The SEC, in its latest comments, required spot Ethereum ETF issuers to submit S-1 forms 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 discusses launching an Ethereum ETF this summer
Many developments have suggested that spot ETH ETFs could begin trading by July 4, which now seems unrealistic. The SEC chairman 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 limbo. The minor changes requested by the SEC may not signal any major issues, as S-1 forms need to be amended to achieve the expected compliance.
The president recently confirmed that the approval process for Ethereum spot ETF runs smoothly 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 another 8% in the last 24 hours, indicating a decline in interest among traders.
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