SEC Delays Launch of Spot Ether ETFs After S-1 Form Comments

The launch of United States-based spot Ether exchange-traded funds (ETFs) has been delayed following the U.S. Securities and Exchange Commission’s (SEC) comments on the S-1 forms. 

The SEC has requested resubmissions of these forms by July 8, pushing the anticipated launch from early July to mid-to-late July.

ETF analysts Eric Balchunas and James Seyffart from Bloomberg have reported that the SEC has taken additional time to return the S-1 forms submitted by prospective spot Ether ETF issuers. This delay has affected the expected launch schedule, moving it to a later date in July. 

Balchunas remarked, 

“Unfortunately, I think we’re going to have to push back our over/under until after the holiday.”

Minor Revisions and Approval Process

Nate Geraci, president of ETF Store, mentioned that the recent round of S-1 revisions was relatively minor. Geraci predicts that the SEC will clear issuers for trading within 14 to 21 days after resubmission. Despite the uncertain timeline, the SEC has indicated a potential launch during the summer. Previously, Balchunas had predicted an early July ETF launch due to the lack of significant commentary from SEC staff on the ETF applicants’ S-1 filings.

The approval of the S-1 forms represents the second part of a two-step process required for the ETFs to go live. The first step involved approving the issuers’ 19b-4 forms in May. The SEC approved the 19b-4 filings from eight ETF bidders on May 23. Unlike the 19b-4 forms, the S-1 forms do not have a specific deadline, making the issuers dependent on the SEC’s review and approval timeline.

Statements from SEC Chair Gary Gensler

On June 26, SEC Chair Gary Gensler confirmed that the approval process for spot Ether ETFs is progressing smoothly. Gensler stated, “These registrants are self-motivated to be responsive to the comments they get, but it’s really up to them how responsive they are.” This statement delegates responsibility for the approval process to the issuers, indicating that the SEC will not intentionally delay it.

The SEC has approved a rule change allowing significant issuers to participate, including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco. Some issuers, such as VanEck, have filed 8-A forms preparing for listing on exchanges by July 8. However, Gensler has indicated that listing spot Ether ETFs on stock exchanges might take months, potentially delaying until September.