Ethereum
SEC Applications Thumbs Down (Again) — TradingView News
Ethereum enthusiasts were traveling the information superhighway toward a Fourth of July fireworks display of a different kind: the launch of the first Ethereum spot ETF.
But in a move that has alarmed investors, the U.S. Securities and Exchange Commission has thrown a major wrench in the works, unexpectedly rejecting the candidates’ proposals and delaying the highly anticipated debut.
Missed release: July launch of Ethereum ETF goes up in smoke
The news came as a shock to many, as market watchers and analysts had confidently predicted a July launch, with some even suggesting a celebratory exchange on Independence Day.
Bloomberg ETF analysts Eric Balchunas and James Seyffart were among those who waved the checkered flag a little too early. Their prediction of a July 2 launch went up in smoke faster than a Roman candle after the SEC decided to put the brakes on the process.
Unfortunately I think we’re going to have to push our over/unders back until after the holidays. Seems like SEC took longer to get back to ppl this week (although again very slight adjustments) and from what I hear the following week it’s dead before the BC holidays = July 8th the process starts again and shortly after they’ll be rolling… https://t.co/0ZQR7yiBLt
Inside sources say the SEC has delayed the planned launch date by requesting changes to the S-1 filings that issuers have submitted. This unexpected change raises serious concerns about the timeline as a whole. While others are anticipating clearance by July 8, the impending U.S. holiday likely adds an additional layer of difficulty.
Uncharted Territory: SEC Takes the Wheel
The lack of a definitive timetable is a major source of frustration for both investors and issuers. Unlike previous Forms 19b-4, which imposed a specific decision deadline on the SEC, the S-1 filing process gives the regulator the freedom to take its time. This essentially gives the SEC the steering wheel, allowing it to request revisions and conduct a thorough review without the pressure of a countdown clock.
Although SEC Chairman Gary Gensler has already hinted at approvals “sometime this summer,” his comments have done little to comfort the market. Recent issues with S-1 filings suggest that even a summer launch may be overly optimistic. This lack of clarity is a major hurdle for issuers and creates uncertainty for investors eager to jump on the Ethereum ETF bandwagon.The road ahead
Even if Ethereum ETFs do eventually make it to the finish line, experts predict that they may not attract the same level of investment as their Bitcoin counterparts. Bitcoin’s perceived lower volatility, coupled with the already established Bitcoin ETF landscape, could make them a more attractive option for some investors.
The SEC’s recent actions have upended the timeline, leaving investors and issuers in a state of uncertainty. Although approval could still occur “sometime this summer,” the lack of clarity and risk of lower capital flows than Bitcoin ETFs suggests a rocky road ahead for these highly anticipated investment vehicles.
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