Ethereum enthusiasts were eagerly anticipating the launch of the first spot Ethereum ETF on July 4th. However, their excitement was dampened when the US Securities and Exchange Commission unexpectedly returned applicants’ proposals, causing a delay in the debut.
Market watchers and analysts had predicted a July launch, with some even suggesting a celebratory trade on Independence Day. Bloomberg ETF analysts Eric Balchunas and James Seyffart were among those who prematurely anticipated a July 2nd debut, only to have their hopes dashed by the SEC’s decision to put the brakes on the process.
The SEC’s request for changes to the S-1 paperwork submitted by issuers has raised concerns about the overall schedule. While some anticipate clearance by July 8th, the upcoming US holiday may pose additional challenges.
The lack of a definitive timeline has frustrated investors and issuers. Unlike previous forms that mandated a specific decision timeframe, the S-1 filing process allows the SEC to review submissions at their own pace. This uncertainty has left many in the market on edge, as they await a potential approval sometime this summer.
Experts suggest that Ethereum ETFs may not attract the same level of investment as Bitcoin counterparts due to perceived lower volatility and the established Bitcoin ETF landscape. The recent actions by the SEC have thrown the timeline into disarray, creating a bumpy road ahead for these highly anticipated investment vehicles.