Ethereum ETF Anticipation Fizzles as SEC Returns S-1 Forms

• The SEC has returned ETH ETF issuers’ S-1 forms. 
• The regulator dampened expectations for an early July launch. 
• Experts still remain hopeful. 

Anticipation for Ethereum ETFs reached a fever pitch as market participants eagerly expected a potential approval in early July . However, in typical SEC fashion, the regulator threw a curveball by unexpectedly returning the proposals, testing onlookers’ patience again.

SEC Shakes Up Ethereum ETF Timeline

Many experts, including Bloomberg ETF analysts Eric Balchunas and James Seyffart, had confidently predicted that spot Ethereum ETFs could make their trading debut as early as July 2. However, the SEC threw a wrench into the works by unexpectedly returning the S-1 forms to issuers just days before the anticipated launch.

According to a source, the SEC has commented on the S-1 forms and requested resubmissions by July 8. This decision has shaken up the timeline for a potential July launch, as the regulator’s recent comments mean there will be at least another round of filings before the ETFs are ready for trading.

With these new comments from the SEC, Balchunas and Seyffart now predict a potential approval after July 8 . They reasoned that the process has likely slowed due to the upcoming July 4th holiday in the US.

Still, the ball is in the SEC’s court, and it could either surprise the market as it has before or take its sweet time in making a decision.

Will the SEC Approve Ethereum ETFs? 

The S-1 filing is the final step before issuers can begin trading. Unlike the 19b-4 forms , which imposed a strict deadline for the SEC to provide a decision, the S-1 form doesn’t come with a specific timeline.

This gives the SEC the liberty to take as much time as it wants with the proposals and request as many revisions as it deems necessary, without the pressure of a ticking clock, as seen with the 19b-4 forms.

SEC Chair Gary Gensler has previously stated that Ethereum ETF approvals could happen “sometime over the course of this summer” but has not provided a more precise timeline. In a recent update, Gensler confirmed that the approval process for spot Ether ETFs is progressing smoothly. However, the latest comments indicate that issuers have encountered a slight hiccup.

On the Flipside

• Experts maintain that Ethereum ETFs are unlikely to record as much inflows as Bitcoin ETFs.
• Most issuers have yet to disclose their fees. So far, only Franklin Templeton has revealed its fee, which is 0.19%.

Why This Matters

Ethereum ETFs are only inches away from the finish line. However, due to the recent comments from the SEC, when it will pass has become more ambiguous than ever.

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