KEY POINTS
- Analysts now believe the SEC won't make a decision until after the July 4th holidays
- Bloomberg's Balchunas said the SEC "took extra time" to provide comments to issuers
- Some crypto users are bearish of a potential launch next week due to the delays
Following the partial approval of spot Ether (ETH) exchange-traded funds (ETFs), there was much buzz over the weekend on X (formerly Twitter) regarding the fundamental question around the Ethereum community: when will the funds be fully approved for trading? At this point in time, industry analysts and experts are unsure, but they agree it won't be within the Independence Day holidays week.
What the SEC has said
The U.S. Securities and Exchange Commission (SEC) approved the 19b-4 filings of exchanges seeking to launch the funds late in May. Since then, the Wall Street regulator has refused to provide an exact timeline regarding the funds' potential launch.
So far, SEC Chair Gary Gensler has only been saying the approval process was going "smoothly." He did say, under oath before Senate lawmakers in mid-June, that he is expecting a decision to be made on S-1 filings "over the course of this summer."
What analysts previously said
Senior ETF analysts for Bloomberg Eric Balchunas and James Seyffart previously projected a possible approval of S-1 filings sometime around the July 4th holiday. At the time, Balchunas said it was a "good sign" that investment giant BlackRock updated its S-1 filing.
Another round of comments from the SEC was likely after applying issuers submit their amendments, then the regulatory agency will make its final decision on the spot Ether ETFs' full approval, he said.
What analysts are saying now
Balchunas was asked over the weekend regarding whether spot Ethereum ETFs will begin trading on July 2nd. The ETF expert said it is unfortunate that the over/under projection for the funds' launch will be pushed pack "till after holiday." He went on to reveal that it appears the SEC "took extra time to get back to" issuers who submitted their amended filings this week.
Unfort think we gonna have to push back our over/under till after holiday. Sounds like SEC took extra time to get back to ppl this wk (altho again very light tweaks) and from what I hear next wk is dead bc holiday = July 8th the process resumes and soon after that they’ll launch… https://t.co/0ZQR7yiBLt
— Eric Balchunas (@EricBalchunas) June 28, 2024
He also said this week is "dead" as it is the holiday week leading to Thursday's July 4th celebrations. The approval process is expected to resume next Monday, July 8, "and soon after that they'll launch," he wrote. Seyffart reposted Balchunas' tweet.
Tim Copeland, the Editor-in-Chief of crypto outlet The Block, seemingly backed the projection of an after-holiday launch. Citing a source at one issuer, he wrote that the SEC returned S-1 forms to applying issuers on Saturday. The issuers were asked to address the regulator's comments and refile their forms by July 8.
Nate Geraci, President of investment advise firm ETF Store, said a source revealed spot Ethereum ETFs won't launch "later in July or later in the summer," but he believes "it shouldn't take this long."
What others are saying
Dan Borovik, a partner at crypto platform Rollbit, agrees that spot ETH ETFs will "go live next week," but noted how the community is "not bullish enough."
THE ETHEREUM ETFs GO LIVE NEXT WEEK!
— borovik (@3orovik) June 30, 2024
YOU’RE NOT BULLISH ENOUGH!! pic.twitter.com/EdjqFVm1PQ
One user believes the funds won't go live anytime next week and expects "like mid July to late." Another user agrees that the ETFs won't be launched in the coming week due to the SEC's delayed turnaround of comments.
They do not go live next week. They are delayed. Looking like mid July to late.
— Cameron Rahm (@CameronRahm) June 30, 2024
While some crypto users are divided over the launch of spot ETH ETFs, it appears the community is sure of one thing: the funds are inevitable.
