As reported by The Block on June 29, the U.S. Securities and Exchange Commission (SEC) has returned S-1 forms to prospective Ethereum ETF issuers with comments, requiring at least one more round of filings before approval.
In particular, the SEC has asked issuers to address the comments and refile their forms by July 8. This development means that the approval process will take longer than initially anticipated. Consequently, the forecasted possibility of Ethereum (ETH) ETFs going live by July 4 is now off the table.
According to a The Block’s source at one of the issuers, the returned forms contained light comments. However, this won’t be the final filing, as at least one more round will be necessary before the ETFs can start trading.
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Timeline uncertainty and previous expectations
While SEC Chair Gary Gensler previously mentioned that Ethereum ETF approvals could occur “sometime over the course of this summer,” no specific timeline has been provided. This lack of clarity has left issuers uncertain about when their ETFs will go live.
Earlier reports had suggested a potential launch date as early as July 4. However, this latest development has dispelled those expectations. Issuers will only have a clearer picture once the SEC provides a deadline for the final filings.
The two-step process towards ETF approval
The S-1 forms are part of a two-step process for ETFs to go live. The first step, which involved the approval of 19b-4 forms, was completed in May. However, unlike the 19b-4 forms, the S-1 forms are not bound to any specific deadline.
This means that the approval timeline is largely dependent on how quickly the SEC can review and respond to the submitted forms. The process has been described by one source as a “winding path,” highlighting the complexity and unpredictability of the approval process.
Looking ahead: What’s next for Ethereum ETFs?
As the SEC continues to scrutinize the S-1 forms, issuers and investors alike are eagerly awaiting the next steps. The additional round of filings will undoubtedly push back the launch date for Ethereum ETFs.
Despite the delay, the ongoing dialogue between the SEC and ETF issuers suggests progress toward eventual approval. Nevertheless, the exact timeline remains uncertain, leaving the crypto and investment communities in anticipation of further developments.
