The SEC’s unexpected decision to send back S-1 forms for spot Ethereum ETF issuers has caused a delay in the approval process. The forms were returned with requests for minor changes, leading to speculation that at least one more round of filings will be required before the ETFs can begin trading. While the initial approval for issuers’ 19b-4 forms was granted in May, there is no specific deadline for the S-1 forms, leaving the issuers dependent on the SEC’s response time.
Despite earlier indications that spot ETH ETFs could launch by July 4th, the recent move by the SEC suggests a delay in the process. The Chair of the SEC had hinted at a potential approval for spot Ethereum ETFs this summer, but without providing a specific date. The requested changes in the S-1 forms may indicate no major issues, but compliance needs to be met before trading can commence.
Several prominent issuers, including BlackRock, Fidelity, and Grayscale, are involved in the approval process for spot Ethereum ETFs. The Chair of the SEC has confirmed that the approval process is proceeding smoothly, but the recent delay in approving the S-1 forms has raised concerns among investors. The market participants have criticized the SEC’s move, particularly as the broader crypto market is already facing sell-off pressure.
The SEC’s decision to send back S-1 forms for spot Ethereum ETF issuers has caused a stir in the market, leading to a decline in ETH price and trading volume. The price of Ethereum has fallen over 1% in the past 24 hours, with a decrease in trading volume by 8%, indicating a decrease in interest among traders. The uncertainty surrounding the approval process for spot Ethereum ETFs has added to the bearish sentiment in the crypto market.
With the SEC requesting minor changes in the S-1 forms, the approval process for spot Ethereum ETFs may face further delays. While the Chair of the SEC has indicated a potential approval this summer, the lack of a specific date has left investors and issuers uncertain. Despite the setbacks, issuers are working towards meeting the compliance requirements set by the SEC to ensure a smooth launch of spot Ethereum ETFs in the near future.
Overall, the SEC’s move to send back S-1 forms for spot Ethereum ETF issuers has created uncertainty in the market, leading to a decline in ETH price and trading volume. The approval process for spot Ethereum ETFs may see further delays as issuers work to address the identified issues and resubmit the updated forms. Despite the setbacks, the issuers and investors remain hopeful for a smooth launch of spot Ethereum ETFs in the coming months, pending approval from the SEC.
