Delay in Launch of United States-Based Spot Ether ETFs by SEC

The highly anticipated launch of United States-based spot Ether exchange-traded funds (ETFs) has hit a roadblock as the U.S. Securities and Exchange Commission (SEC) has delayed the process. Many in the crypto community were expecting the launch to happen as early as July 2, but now it looks like it will be pushed back to mid-July or later.

According to ETF analysts Eric Balchunas and James Seyffart, the SEC has requested additional time to review and return the S-1 forms submitted by prospective spot Ether (ETH) ETF issuers. This delay comes after the SEC commented on the forms and requested resubmissions by July 8.

ETF Store president Nate Geraci believes that the last round of revisions was minor and predicts that the SEC could clear issuers for trading within 14–21 days. While the exact timeline remains uncertain, the SEC has hinted at a potential launch sometime this summer.

This delay is part of a two-step process required for the ETFs to go live, with the approval of the S-1 forms being the second step. The first part involved the approval of the issuers’ 19b-4 forms back in May, which the SEC approved for eight ETF bidders.

SEC Chair Gary Gensler has confirmed that the approval process for spot Ether ETFs is progressing smoothly, with major issuers like BlackRock, Fidelity, and Grayscale among those participating in the process. However, Gensler noted that listing spot Ether ETFs on stock exchanges could take months and may not happen until September, putting the responsibility on the applicants to move the process forward.

Despite the delay, the crypto community remains hopeful for the launch of spot Ether ETFs in the near future, with the potential for significant impact on the market once they are approved for trading. Stay tuned for more updates on this developing story.