US Spot Ether ETF Launch Delayed as SEC Reviews Applications; Analysts Predict Mid-July Debut

By Aaron Feuerstein July 01, 2024 In ETF, Ethereum, SEC
June 27th 2024, investor anlayzing the ETF ETH Ethereum Trust.
  • The SEC has postponed the approval of Spot Ethereum ETFs, now expected mid-July or later.
  • Applicants must submit revised S-1 forms by July 8.
  • Further filings are anticipated before the ETFs can commence trading.

The writing was on the wall, and it has been confirmed. The US Securities and Exchange Commission (SEC) has delayed the Spot Ethereum exchange-traded funds (ETFs). Initially, it was expected that an approval could come as early as July.

Related: Crypto ETF Landscape Heats Up: Australian Bitcoin ETF Buys the Dip, 21Shares Pursues US Solana Listing

Eric Balchunas updated the expected approval forecast for the Spot Ethereum ETFs in a post last week, citing staffing issues and the July 4th holiday as reasons for a likely delay until mid-July or later.

Nate Geraci, co-founder of the ETF Institute, said applicants have been asked to submit amended S-1 forms to the SEC by July 8. This means mid-July or even later this month is now more likely for these funds to be approved.


The source Geraci refers to said the upcoming filing won’t be the last one, adding “there will need to be at least one more round of filings before the ETFs can finally start trading”.

S-1 Filings Crucial Step for ETH ETF, Next Steps Up to Applicants, Says Gensler

An S-1 filing is a registration statement submitted to the SEC as part of the process to list an ETF or shares on an exchange. This registration statement provides detailed information about the ETF, its objectives, strategies, risks, and management.

The S-1 form is the second part in the listing process. The SEC already approved 19b-4 forms in May, these were needed to list the funds on exchanges. The S-1 forms, unlike the 19b-4 forms, don’t have a specific deadline.

Speaking to Reuters, SEC Chief Gary Gensler stated that the duration of the process depends on the applicants, thus shifting the onus away from the SEC.

These registrants are self-motivated to be responsive to the comments they get, but it’s really up to them how responsive they are.

Gary Gensler

Ethereum Reacts With Move Above US$3,500, But Will it Last?

It seems ETH didn’t mind the delay – perhaps people thought it gives them more time to buy ETH before institutions move in – with the price of ETH gaining as much as 4% in the past 24 hours and currently trading at US$3,509.58 (AU$5,260.52).

Ethereum (ETH), 1-day graph, source: CoinMarketCap

The Spot Bitcoin ETF launch in the US in January saw a lot of excitement prior to going live, however, the price of BTC has since cooled. Former PayPal CEO Peter Thiel just told CNBC that he believes the Bitcoin price may not significantly increase from here on.

Related: BlackRock: BTC a Hedge Against Monetary Risk and Geopolitical Uncertainty

Thiel said the ETF has already attracted institutional interest, which makes him sceptical about where much of the future demand will come from.

I’m not sure it’s going to go up that dramatically from here. We got the ETF edition, and I don’t know who else buys it.

Peter Thiel

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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