Ethereum ETFs encounter a setback Approval delayed once again
The U.S. Securities and Exchange Commission (SEC) has sent back S-1 forms to potential Ethereum ETF issuers with comments, necessitating another round of filings before approval, as per a report by The Block on June 29.
Issuers have been asked to address the comments and refile their forms by July 8. This means that the approval process will take longer than initially expected, and the possibility of Ethereum (ETH) ETFs going live by July 4 is no longer feasible.
One of the issuers, as per a source at The Block, stated that the returned forms contained minor comments. However, at least one more round of filings will be required before the ETFs can begin trading.
SEC Chair Gary Gensler had previously mentioned that Ethereum ETF approvals could happen “sometime over the course of this summer,” but no specific timeline has been provided. This lack of clarity has left issuers uncertain about when their ETFs will go live.
Earlier reports had suggested a potential launch date as early as July 4. However, this latest development has dispelled those expectations. Issuers will only have a clearer picture once the SEC provides a deadline for the final filings.
The S-1 forms are part of a two-step process for ETFs to go live. The first step, which involved the approval of 19b-4 forms, was completed in May. However, unlike the 19b-4 forms, the S-1 forms are not bound to any specific deadline, meaning the approval timeline is largely dependent on how quickly the SEC can review and respond to the submitted forms. The process has been described by one source as a “winding path,” highlighting the complexity and unpredictability of the approval process.
As the SEC continues to review the S-1 forms, issuers and investors are eagerly awaiting the next steps. The additional round of filings will undoubtedly push back the launch date for Ethereum ETFs. Despite the delay, the ongoing dialogue between the SEC and ETF issuers suggests progress toward eventual approval. However, the exact timeline remains uncertain, leaving the crypto and investment communities in anticipation of further developments.