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The SEC has taken an unexpected step in the ongoing approval process for the ETH ETF by returning S-1 forms to its issuers. The spot Ethereum ETFs which were estimated by experts like Eric Balchunas, the senior ETF analyst at Bloomberg, to launch next week have further been delayed by the US SEC as it has issued a few comments on the S-1 form submitted by spot Ethereum ETF issuers.
SEC Sends Back S-1 Forms For Minor Changes
The forms were sent back with a request for minor changes and issuers were asked to address the identified issues and resubmit the updated forms, suggesting that the final approval of spot Ethereum ETFs may be delayed and at least one more round of filings will be required before they begin trading.
The SEC in its latest comments has asked the spot Ethereum ETF issuers to submit the S-1 forms by July 8.
S-1 forms are a crucial part of the two-stage process that ETFs must go through before becoming operational. The first step towards the approval of spot Ethereum ETFs was the approval of the issuers’ 19b-4 forms in May which was granted by the SEC as per the initial set deadline. However, there has been no specific deadline set for the S-1 forms and the issuers are dependent on the SEC’s response time.
SEC Hints At Ethereum ETF Launch This Summer
There were many developments suggesting spot ETH ETFs could begin trading by July 4th which now seems unrealistic. The SEC Chair had recently indicated that approval for spot Ethereum ETFs could come this summer but avoided giving a specific date which left the issuers and investors in uncertainty. The minor changes requested by the SEC might signal no major issues, the S-1 forms need to be changed to achieve the expected compliance.
The Chair recently confirmed that the approval process for spot Ethereum ETF is going smoothly after issuers including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco.
Investors Concerned Over SEC’s Move
The SEC’s move was criticized by the market participants as Ethereum and the broader crypto market are already trading under sell-off pressure. ETH price fell over 1% in the past 24 hours and its trading volume also decreased further by 8% in the last 24 hours, indicating a decline in interest among traders.