Ethereum
enthusiasts
were
cruising
down
the
information
superhighway
towards
a
July
4th
fireworks
celebration
of
a
different
kind:
the
launch
of
the
first
spot
Ethereum
ETF.

Related
Reading

But
in
a
move
that
worried
investors,
the
US
Securities
and
Exchange
Commission
threw
a
big
wrench
into
the
works,
unexpectedly
returning
applicants’
proposals
and
delaying
the
much-anticipated
debut.

 

Missed
Exit:
Ethereum
ETF
July
Launch
Goes
Up
In
Smoke

The
news
came
as
a
shock
to
many,
as
market
watchers
and
analysts
alike
had
confidently
predicted
a

July
launch,
with
some
even
suggesting
a
celebratory
trade
on
Independence
Day.

Bloomberg
ETF
analysts
Eric
Balchunas
and
James
Seyffart
were
among
those
waving
the
checkered
flag
a
little
too
early.
Their
prediction
of
a
July
2nd
debut
went
up
in
smoke
faster
than
a
Roman
candle
after
the
SEC
decided
to
put
the
brakes
on
the
process.

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

Insiders
claim
that
the
SEC
has
delayed
the
anticipated
debut
date
by
requesting
changes
to
the
S-1
paperwork
that
issuers
have
submitted.
This
unexpected
diversion
raises
serious
concerns
about
the
schedule
as
a
whole.
Although
there
are
others
who
anticipate
clearance
by
July
8th,
the
impending
US
holiday
probably
adds
another
level
of
difficulty.

Uncharted
Territory:
The
SEC
Takes
The
Wheel

The
lack
of
a
definitive
timeline
is
a
major
source
of
frustration
for
investors
and
issuers
alike.
Unlike
the
previous
19b-4
forms,
which
mandated
a
specific
SEC
decision
timeframe,
the
S-1
filing
process
gives
the
regulatory
body
the
freedom
to
take
its
sweet
time.
This
essentially
hands
the
steering
wheel
over
to
the
SEC,
allowing
them
to
request
revisions
and
conduct
a
thorough
review
without
the
pressure
of
a
ticking
clock.

While
SEC
Chair

Gary
Gensler
has
previously
hinted
at
approvals
“sometime
this
summer,”
his
comments
haven’t
offered
much
solace
to
the
jittery
market.
The
recent
snafu
with
the
S-1
forms
indicates
that
even
a
summer
launch
might
be
overly
optimistic.
This
lack
of
clarity
is
a
major
hurdle
for
issuers
and
creates
uncertainty
for
investors
who
are
eager
to
jump
on
board
the
Ethereum
ETF
bandwagon.

 

Related
Reading

The
Road
Ahead

Even
if

Ethereum
ETFs
do
eventually
reach
the
finish
line,
experts
predict
they
might
not
attract
the
same
level
of
investment
as
their
Bitcoin
counterparts.
The
perceived
lower
volatility
of
Bitcoin,
coupled
with
the
already
established
Bitcoin
ETF
landscape,
might
make
them
a
more
attractive
option
for
some
investors.

The
SEC’s
recent
actions
have
thrown
the
timeline
into
disarray,
leaving
investors
and
issuers
in
a
state
of
limbo.
While
approval
might
still
happen
“sometime
this
summer,”
the
lack
of
clarity
and
the
potential
for
lower
inflows
compared
to
Bitcoin
ETFs
paint
a
picture
of
a
bumpy
ride
ahead
for
these
highly
anticipated
investment
vehicles.

Featured
image
from
Pexels,
chart
from
TradingView

Go to Source
Author: Christian Encila

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