ETFs
SEC Delays Launch of Spot Ether ETFs Due to Regulatory Reviews
The planned launch of the first Ethereum spot ETFs in the United States is delayed as the US Securities and Exchange Commission (SEC) has extended its review process. Originally scheduled for an early July launch, the schedule was pushed back to at least mid-July following the SEC’s request for additional changes to Form S-1s submitted by issuers.
SEC Oversight Intensifies as Launch Date Shifts
Bloomberg analysts Eric Balchunas and James Seyffart pointed out that the SEC’s call to submit new filings by July 8 could further delay the launch to late July or beyond. This adjustment stems from the SEC’s careful review of filings, reflecting a cautious stance toward the thriving ETF market for digital assets.
Unfortunately I think we’re going to have to push our over/unders back until after the holidays. Seems like SEC took longer to get back to ppl this week (although again very slight adjustments) and from what I hear the following week it’s dead before the BC holidays = July 8th the process starts again and shortly after they’ll be rolling… https://t.co/0ZQR7yiBLt
— Eric Balchunas (@EricBalchunas) June 28, 2024
Nate Geraci, president of ETF Store, mentioned that despite the minor nature of the recent revisions, the approval timeline remains in flux, with a decision expected within three weeks of revised submissions.
Separately, SEC Chairman Gary Gensler confirmed that even if the review process proceeds smoothly, the actual listing of these ETFs on exchanges may not occur until September. This forecast largely depends on how quickly applicants respond to the SEC’s comments.
Regulatory steps and market implications
The process of bringing Ethereum ETFs to market involves crucial regulatory approvals, starting with the acceptance of Forms 19b-4, which occurred for eight candidates on May 23. Unlike those forms, the S-1 forms required for final approval are not subject to statutory deadlines, placing the launch schedule under the SEC’s discretionary review.
This detailed review by the SEC underscores its commitment to protecting investors by ensuring that Ethereum ETFs meet all necessary regulatory standards before entering the market.
As the digital asset landscape continues to evolve, the results of these reviews are expected to set important precedents for the regulation of cryptocurrency-related investment products in the U.S. market.
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