The U.S. Securities and Exchange Commission (SEC) has delayed the launch of U.S.-based spot Ethereum exchange-traded funds (ETFs), initially anticipated for early July. According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the SEC has taken additional time to review the S-1 forms submitted by prospective Ether ETF issuers, with a new deadline for resubmissions set for July 8. This delay pushes the potential launch to mid-to-late July.

SEC Comments Extend Timeline

The SEC’s comments on the S-1 forms have necessitated revisions, delaying the approval process. Balchunas noted that this extended timeline could postpone the launch until later in July. Nate Geraci, president of the ETF Store, mentioned that the latest S-1 revisions were minor, predicting that the SEC might approve trading within 14 to 21 days. Although the exact timeline remains uncertain, there is an indication that a summer launch is still feasible.

Source: Eric Balchunas

Two-Step Approval Process for Ethereum ETFs

The approval of S-1 forms represents the second part of a two-step process required for the ETFs to go live. The first step involved the approval of 19b-4 forms, which the SEC granted to 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.

Progress and Future Steps

On June 26, SEC Chair Gary Gensler confirmed that the approval process for spot Ethereum ETFs is progressing. The SEC has approved a rule change allowing major issuers, including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco, to participate. Issuers like VanEck have also filed 8-A forms in preparation for listing on exchanges by July 8.

However, Gensler mentioned that listing spot Ether ETFs on stock exchanges could take months, potentially not occurring until September. He stated that the timeline for Ether ETF listings largely depends on the applicants’ response times to the SEC’s requirements.