Ethereum ETFs Face Delays in July Launch

The U.S. Securities and Exchange Commission (SEC) has returned S-1 forms to potential issuers of spot ETH-ETFs for revisions, according to The Block, citing a source.

The regulator provided “minor comments” and expects the corrected applications to be resubmitted by July 8, the source noted.

According to the source, this will not be the final submission. At least one more round of document exchanges will be required.

Approval of the S-1 is the second part of the two-step process for launching exchange-traded funds. On May 23, the SEC approved 9b-4 forms from issuers, but the regulator has no deadlines for reviewing the S-1.

In early June, Bloomberg analyst Eric Balchunas suggested that spot Ethereum-ETFs could launch on July 2. Reuters offered a similar forecast, with the agency expecting the Commission’s approval by July 4.

SEC Chairman Gary Gensler, during Senate Appropriations Committee hearings, indicated that the registration of issuers’ S-1 forms could be completed “sometime by the end of this summer.” He added that the application review process is “going smoothly.”

Analysts at Bernstein expect lower demand for Ethereum-ETFs compared to similar bitcoin products, launched in January.