The SEC has made a surprising decision in the approval process for the ETH ETF by sending back S-1 forms to its issuers. This has caused a delay in the launch of spot Ethereum ETFs, which were expected to be launched next week. The SEC has requested minor changes to be made to the forms, and issuers have been asked to address the issues and resubmit the updated forms. This means that the final approval of spot Ethereum ETFs may be delayed, and another round of filings will be required before they can begin trading.
The SEC has asked spot Ethereum ETF issuers to submit the S-1 forms by July 8. These forms are an essential part of the approval process for ETFs. The first step towards approval was the approval of the issuers’ 19b-4 forms in May, which was granted by the SEC. However, there is no specific deadline for the S-1 forms, and issuers are waiting for the SEC’s response.
Despite the delays, the SEC has hinted that the launch of Ethereum ETFs could still happen this summer. The Chair of the SEC has indicated that the approval process is going smoothly. Issuers like BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco are all involved in the process.
Some investors are concerned about the SEC’s move, as Ethereum and the broader crypto market are already under sell-off pressure. The price of ETH has fallen over 1% in the past 24 hours, and trading volume has also decreased by 8% in the last 24 hours. This indicates a decline in interest among traders.