Regulation
SEC Delays Launch of Spot Ether ETFs Due to Regulatory Scrutiny
The planned launch of the first Ethereum spot ETFs in the United States has been delayed as the U.S. Securities and Exchange Commission (SEC) has extended its review process. Originally scheduled for an early July launch, the timeline has been pushed back to at least mid-July following the SEC’s request for additional amendments to the S-1 forms submitted by issuers.
SEC Scrutiny Intensifies as Launch Date Changes
Bloomberg analysts Eric Balchunas and James Seyffart pointed out that the SEC’s call for a resubmission by July 8 could further delay the launch until late July or beyond. This adjustment stems from the SEC’s careful review of filings, reflecting a cautious stance toward the booming ETF market for digital assets.
Unfortunately, we will have to postpone our over/under until after the holidays. It seems like the SEC took longer to respond to people this week (although there were still very slight edits) and from what I’ve heard, next week is dead because the holidays = July 8 the process resumes and shortly after they will launch… https://t.co/0ZQR7yiBLt
– Eric Balchunas (@EricBalchunas) June 28, 2024
Nate Geraci, president of the 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.
Additionally, SEC Chairman Gary Gensler confirmed that even if the review process moves forward smoothly, the actual listing of these ETFs on exchanges may not materialize 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 from the SEC highlights 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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