The launch of Ethereum exchange-traded funds (ETFs), which many people were expecting to happen on July 2nd, has been postponed by the U.S. Securities and Exchange Commission (SEC).

According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the SEC has taken additional time to return the S-1 forms submitted by spot Ether ETF issuers and postponed this launch to a later date.

SEC comments are delaying the process

The SEC commented on S-1 forms and requested resubmission by July 8th. According to Balchunas, the new timeline suggests that the launch of spot Ethereum ETFs could be delayed until mid to late July.

ETF Store president Nate Geraci noted that the latest S-1 revision cycle is relatively small and anticipated that the SEC will approve issuers for trading within 14-21 days. While the exact timeline remains uncertain, the SEC indicated a potential launch this summer.

In early June, Balchunas predicted a launch window for an ETF in early July based on the SEC staff's lack of significant comment on ETF applicants' S-1 applications.

Two-step process for Ethereum ETFs

The approval of S-1 forms is the second part of the two-step process required for the implementation of ETFs. The first part included the approval of the issuers' 19b-4 forms in May. On May 23, the SEC approved the 19b-4 applications of eight ETF proposers.

Unlike Form 19b-4, S-1 forms are not tied to a specific deadline and leave issuers dependent on the SEC's schedule for review and approval.

SEC has approved a rule change allowing major issuers such as BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco to participate in the process. In addition, issuers such as VanEck have also completed their 8-A forms, which are ready to be listed on exchanges by July 8th.

However, Gensler claimed that the listing of spot Ether ETFs on the stock exchange could take months and would not happen until September. Gensler attributed the responsibility of Ether ETF listings to the applicants and claimed that the process is entirely dependent on response times.

This article does not contain investment advice or recommendations. Every investment and trading activity carries risks and readers should conduct their own research when making decisions.