SEC delays spot Ethereum ETFs – by how long?

The SEC has delayed the approval of spot Ethereum ETFs. Specifically, it returned a certain form with requested amendments—this can also be seen as a step in a negotiation.

Getting an ETF approved can sometimes feel like navigating a bureaucratic obstacle course. While Bitcoin ETFs crossed the finish line in a single stride once the U.S. Securities and Exchange Commission (SEC) signaled its approval, the process for Ethereum is dragging out a bit longer.

At the end of May, the SEC completed the first step toward ETF approval: The agency greenlighted the 19b-4 forms. This essentially clears the path for an ETF, as the SEC concedes that the market is mature enough for such a product. However, what’s still pending are the approvals for the S-1 forms, which concern the specific ETFs. Numerous financial institutions, including BlackRock, Fidelity, 21Shares, Grayscale, iShares, and VanEck, had completed such forms—only to have them returned with amendment requests from the SEC.

Thus, the bureaucratic back-and-forth continues. The applicants have until July 8 to send the forms back to the SEC with the requested changes. Even if the SEC accepts these forms, we are not at the finish line yet, as the documents are still not finalized. This will likely only be the case after the following round.

Market expectations that Ethereum ETFs would go live in July are largely off the table. It is more likely to happen in August, or perhaps even September. However, this does not change the fact that the decision to approve the 19b-4 forms in late May paved the way for ETFs, making them inevitable.

After Ethereum ETFs, financial institutions will attempt to launch other crypto ETFs, such as for Solana, BNB, XRP, and so on down the list of the largest coins. If the SEC is already causing delays with Ethereum relative to Bitcoin, this can also be interpreted as a signal: There is no inherent right to a crypto ETF. The less established and proven a coin is, the more likely the SEC is to hesitate and possibly even reject it. The negotiations over which cryptocurrencies will be approved for an ETF have thus already begun.