ETFs
SEC Delays Launch of Spot Ether ETFs After Form S-1 Comments
The launch of the US-based company Ether spot exchange traded funds (ETF) was delayed following comments from the United States Securities and Exchange Commission (SEC) on Forms S-1.
The SEC requested resubmission of those forms by July 8, pushing back the planned launch from early July to mid-July.
ETF analysts Eric Balchunas and James Seyffart of Bloomberg reported that the SEC took longer to return Form S-1s submitted by potential issuers of spot Ether ETFs. This delay affected the planned launch schedule, moving it to a later date in July.
Balchunas remarked:
“Unfortunately, I think we’re going to have to push our over/unders back until after the holidays.”
Unfortunately, we’re going to have to push our over/under back until after the holidays. It seems like the SEC took longer to respond to people this week (although there were still very minor changes) and from what I hear, next week is dead because the holidays = July 8th, the process starts again and shortly after that they’ll launch… https://t.co/0ZQR7yiBLt
— Eric Balchunas (@EricBalchunas) June 28, 2024
Minor revisions and approval process
Nate Geraci, President of ETF Store, mentioned The recent round of revisions to the S-1 were relatively minor, according to Mr. Geraci. Mr. Geraci anticipates that the SEC will allow issuers to trade within 14 to 21 days of resubmission. Despite the uncertain timeline, the SEC has indicated a potential launch during the summer. Previously, Mr. Balchunas predicted an ETF launch in early July due to the lack of meaningful comments from SEC staff on ETF applicants’ S-1 filings.
Approval of Forms S-1 represents the second part of a two-step process required for ETFs to become operational. The first step was to approve issuers’ Form 19b-4s in May. The SEC approved 19b-4 filings from eight ETF bidders on May 23. Unlike Forms 19b-4, Forms S-1 do not have a specific deadline, making issuers dependent on the SEC’s review and approval schedule.
Statements by SEC Chairman Gary Gensler
On June 26, SEC Chairman Gary Gensler confirmed that the approval process for spot Ether ETFs is progressing smoothly. Gensler said, “These registrants are motivated to respond to the comments they receive, but it’s really up to them how responsive they are. » This statement delegates responsibility for the approval process to issuers, indicating that the SEC will not intentionally delay it.
The SEC approved a rule change allowing large issuers to participate, including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares and Invesco. Some issuers, such as VanEck, have filed Forms 8-A in preparation for listing on the stock exchange by July 8. However, Gensler indicated that the listing of spot Ether ETFs on exchanges could take months, or even be delayed until September.