The launch of the first spot of Ethereum ETFs in the U.S. has hit a roadblock as the Securities and Exchange Commission (SEC) extends its review period.
Initially expected in early July, the launch is now postponed, with new amendments due by July 8, pushing the potential rollout to late July or later.
Bloomberg analysts Eric Balchunas and James Seyffart suggest this delay reflects the SEC’s careful approach to the evolving market for cryptocurrency ETFs.
Despite minor revisions requested, the timeline remains uncertain, potentially shifting to September, according to SEC Chair Gary Gensler.
Nate Geraci, President of the ETF Store, notes that while the recent changes are minor, they highlight the fluidity of the approval process.
This additional scrutiny aims to ensure investor protection as the SEC evaluates the filings.
The process for launching Ethereum ETFs involves several regulatory steps, starting with the acceptance of 19b-4 forms, which occurred on May 23.
However, the S-1 forms, crucial for final approval, lack statutory deadlines, giving the SEC flexibility in its review.
This delay signals the SEC’s commitment to a thorough evaluation, setting a precedent for how cryptocurrency investment products are regulated in the U.S.