The US Securities and Exchanges Commission (SEC) has requested changes from ETH ETF S-1 applicants, causing a delay in the launch date of the ETFs. Applicants were asked to resubmit their forms by 8 July, leading to speculations about the new launch timeline. Despite the setback, industry experts like Bloomberg analyst Eric Balchunas believe that the approval process may not take too long. Balchunas predicts that the SEC will approve the ETH ETFs by the end of July, allowing issuers to launch the products by mid to late July.
In a recent post on X, Balchunas mentioned that the SEC took extra time to review the applications this week, resulting in minor tweaks requested from the issuers. He also noted that the following week might be slow due to the holiday on July 8th, but the process will resume shortly after that, potentially leading to the launch of the ETFs. Previously, Balchunas had anticipated the ETFs to be launched before the American Independence Day, but the recent developments have caused a shift in the expected timeline.
SEC Chair Gary Gensler had previously mentioned that the ETFs would be launched “sometime over the course of this summer,” leaving a window of three months for the approval and issuance process. Despite this statement, many in the industry believe that the approval could happen as early as this month, aligning with Balchunas’ latest predictions. The forms returned to the issuers by the SEC only require minimal changes and adjustments, indicating that the approval process may be nearing its conclusion. However, the speed at which the SEC acts on these changes will ultimately determine the final launch date of the ETH ETFs.
Unlike the 19b-4 applications that had a specific deadline, the S-1 applications do not come with a set timeframe for approval. This flexibility could work in favor of the issuers, as it allows for more time to address any feedback provided by the SEC. Overall, the delay in the launch of the ETH ETFs may be temporary, with the approval expected to happen in the coming weeks. Investors and stakeholders are eagerly waiting for the announcement from the SEC regarding the official launch date of the much-anticipated ETH ETFs.