Key Takeaways
- As per Bloomberg ETF analysts Eric Balchunas and James Seyffart, the SEC has moved the launch to mid-July or later.
- The SEC reviewed the S-1 forms and has requested that issuers resubmit them by July 8
The U.S. Securities and Exchange Commission (SEC) has delayed the launch of U.S.-based spot Ether exchange-traded funds (ETFs), initially expected as early as July 2. According to sources familiar with the matter, the SEC has requested issuers to resubmit their S-1 forms by July 8, pushing the anticipated launch to mid-to-late July.
Bloomberg ETF analysts Eric Balchunas and James Seyffart had predicted the launch for early July. However, the SEC’s comments on the S-1 forms have necessitated further revisions. SEC Chair Gary Gensler recently confirmed that the approval process is progressing smoothly, with participation from major financial firms like BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco.
In preparation for listing on exchanges, several Ether ETF issuers, including VanEck, have filed Form 8-A, aiming for a listing date around July 8. Despite this delay, Nate Geraci, President of ETF Store, noted that the last round of S-1 revisions was relatively minor. He predicted that the SEC could clear issuers for trading within the next 14-21 days, suggesting a potential launch later this summer.
The delay has disappointed many in the market, as Ethereum and the broader crypto market are already experiencing selloff pressure. The anticipated launch of Ethereum ETFs had sparked hopes of an “altseason,” with the ETH/BTC price showing signs of recovery.
Over the past 24 hours, the price of ETH has dropped by over 1%, currently trading at $3,384. The 24-hour trading range has seen lows of $3,363 and highs of $3,467. Additionally, trading volume has decreased by 8%, indicating waning interest among traders.
The SEC’s request for resubmission of the S-1 forms comes after an initial lack of significant commentary from SEC staff, which had fueled expectations for an early July launch. The approval of the S-1 forms is the second step in a two-part process required for the ETFs to go live. The first step involved the approval of the issuers’ 19b-4 forms in May, with the SEC approving these filings from eight ETF bidders on May 23. Unlike the 19b-4 forms, the S-1 forms do not have a specific deadline, leaving issuers dependent on the SEC’s review timeline.
On June 26, SEC Chair Gary Gensler confirmed the smooth progress of the approval process for spot Ether ETFs. The SEC has approved a rule change allowing major issuers to participate in the process. However, Gensler indicated that listing spot Ether ETFs on stock exchanges could take months, potentially delaying the launch until September. He emphasized that the timeline depends on the applicants’ response times.
On June 25, VanEck filed a Form 8-A with the SEC for its spot Ether ETF, moving it closer to launching. Eight asset managers, including financial giants like BlackRock, VanEck, and Grayscale Investments, are seeking SEC approval for these Ethereum spot ETFs.
These firms have previously launched successful spot Bitcoin ETFs, such as the iShares Bitcoin Trust (IBIT), VanEck Bitcoin Trust (HODL), and Grayscale Bitcoin Trust (GBTC). The success of these Bitcoin ETFs, which launched in January and quickly attracted around $8 billion in assets, sets a promising precedent for the Ethereum spot ETFs.
