Ethereum ETF Approval Delayed by the SEC

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Hey folks.

An unexpected step is been taken by the Securities and Exchange Commission of the United States in the ongoing approval process for Ethereum ETF by returning S-1 forms to its issuers.

Spot Ethereum ETFs were expected to debut next week, according to experts like Eric Balchunas, senior ETF analyst at Bloomberg. However, the US SEC has since provided some feedback on the S-1 form that issuers of the spot Ethereum ETFs have submitted.

Reportedly, the forms were returned back with a request for small changes and issuers were asked to address the issues identified and resubmit the forms after updating, proposing that the final approval of ETH ETFs may hinder and at least one more round of filings be required before they are open to trading.

The issuers of ETH ETFs are asked in the latest comments by the SEC to submit S-1 forms by July 8. One of the most important steps in the two-step procedure that ETFs have to go through in order to become operational is the S-1 form.

It currently looks improbable that spot ETH ETFs might start trading by July 4th, despite numerous developments indicating otherwise. The Chair of the Securities and Exchange Commission had specified recently the spot ETH ETFs approval could come this summer but didn't give the specific date which has left the investors and issuers in uncertainty.

Given that Ethereum and the larger cryptocurrency market are currently experiencing sell-off pressure, market players condemned the SEC's action.

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