Ethereum ETF Launch Faces Delays as SEC Requests Additional Forms

The U.S. Securities and Exchange Commission (SEC) has returned S-1 forms to companies wanting to launch Ethereum ETFs. The Block reported this news on June 29.

The SEC wants these companies to answer some questions and send new forms by July 8. This means it will take longer to approve the ETFs. Earlier guesses that Ethereum ETFs might start on July 4 are now wrong.

Someone from one of these companies told The Block that the SEC’s questions were not too hard. But they will need to send in forms at least one more time before they can start selling ETFs. SEC boss Gary Gensler said Ethereum ETF approvals might happen “sometime this summer.” But he didn’t give an exact date, so companies are unsure when they can start their ETFs.

Some people thought ETFs might start as soon as July 4. But now we know that won’t happen. Companies will know more when the SEC tells them when to send their final forms.

Two Steps to Get ETF Approval

To start an ETF, companies need to do two things. First, they need to get 19b-4 forms approved. This happened in May. Now, they’re working on S-1 forms. Unlike 19b-4 forms, S-1 forms don’t have a set time limit for approval.

This means the SEC can take as long as it wants to look at the forms and answer. One person called this a “winding path,” showing how tricky and unpredictable it is to get approval.

What’s Next for Ethereum ETFs?

As the SEC continues to examine the S-1 forms, companies and investors are waiting to see what happens next. The extra round of paperwork will push back the start date for Ethereum ETFs.

Even with this delay, the back-and-forth between the SEC and ETF companies shows they’re making progress. But no one knows precisely when the ETFs will start. The crypto world and investors are eagerly waiting for more news.

The SEC’s careful review of these ETF applications shows they take this new investment type seriously. They want to ensure everything is in order before giving the green light. This might frustrate some who want quick approval, but it protects investors.

For now, companies working on Ethereum ETFs must be patient. They need to answer the SEC’s questions clearly and thoroughly. The sooner they do this, the faster the process might move forward. But in finance regulations, nothing is certain until it’s officially approved.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.