The SEC Delays Ethereum ETF Approval Process ⏳
Bad news for those eagerly anticipating the launch of spot Ethereum ETFs next week. The Securities and Exchange Commission (SEC) has thrown a curveball by returning the S-1 forms to their issuers 🔄. This unexpected move means further delays for the anticipated launch and leaves many wondering about the next steps.
A Hiccup in the Approval Process 👎
- Ethereum ETFs were expected to launch next week, according to experts like Eric Balchunas, a senior ETF analyst at Bloomberg
- The SEC’s recent feedback prompted the return of the S-1 forms for revisions
- Issuers have been asked to make minor adjustments and resubmit updated forms
This setback implies that the final approval may be postponed, with another round of filings anticipated before these ETFs can hit the market 📉.
Deadline for Revisions: July 8 🗓️
The SEC has imposed a deadline of July 8 for the revised S-1 forms. The completion of the S-1 form is a crucial step in the approval process for ETFs. While the first phase, approval of issuers’ 19b-4 forms, was completed in May, the timeline for the completion of the S-1 forms remains uncertain, subject to the SEC’s review process.
Impact on Expected Trading Dates 📆
- Previous expectations hinted at spot ETH ETFs trading by July 4th
- However, recent developments suggest this timeline is unrealistic
- SEC Chair Gary Gensler hinted at potential summer approval, but did not specify a date
- The request for minor changes to S-1 forms indicates the need for compliance adjustments
The SEC’s decision has not been well-received, particularly as Ethereum and the broader crypto market experience downward trends. ETH’s price has dropped by over 1% in the past 24 hours, with trading volume also declining by 8%, reflecting diminishing trader interest 📉.
Looking Ahead 🔍
Despite the setbacks, the process for approving spot Ethereum ETFs continues. Big names like BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco are striving to meet the SEC’s requirements. The market eagerly awaits further updates on when these ETFs could finally debut on the trading floor 📈.
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