The much-anticipated debut of U.S.-based spot Ethereum ETFs, initially expected around July 2, has encountered a delay due to the U.S. Securities and Exchange Commission’s (SEC) extended review process.

SEC’s Extended Review Timeline

Bloomberg ETF analysts Eric Balchunas and James Seyffart have reported that the SEC is taking additional time to review the S-1 forms submitted by potential spot Ether ETF issuers.

Comments and Resubmissions: The SEC has requested amendments and resubmissions of the S-1 forms by July 8. Balchunas indicates that this could push the launch of spot Ethereum ETFs to mid-to-late July.

Market Reactions: ETF Store President Nate Geraci observed that the previous round of S-1 revisions was minimal. He anticipates the SEC will authorize trading within 14–21 days following the resubmission, although the precise timing remains indeterminate. Nevertheless, the SEC has hinted at a probable launch during the summer.

Understanding the Two-Step Approval Process

The approval of S-1 forms constitutes the latter phase of a bifurcated procedure necessary for the ETFs to commence trading. Initially, the SEC sanctioned the issuers’ 19b-4 forms in May.

Timeline: The SEC ratified 19b-4 submissions from eight ETF aspirants on May 23. Unlike the 19b-4 forms, the S-1 forms are not subject to a rigid deadline, thereby placing issuers at the mercy of the SEC’s review timeline.

On June 26, SEC Chair Gary Gensler confirmed that the approval process for spot Ether ETFs is advancing smoothly.

Major Players and Future Projections

Approved Issuers: The SEC has approved a regulatory amendment allowing key issuers, including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco, to partake in this process.

Preparation for Listing: Issuers like VanEck have filed 8-A forms in preparation for listing on exchanges by July 8.

However, Gensler has indicated that listing spot Ether ETFs on stock exchanges might take several months, potentially extending until September. He emphasized that the timeline hinges on the applicants’ responsiveness.