Ethereum ETF Dream On Hold: SEC Thumbs Down Applications (Again)

Christian Encila

1 year ago

3 mins read

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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.

Investor excitement was dampened when the US Securities and Exchange Commission unexpectedly sent back applicants’ proposals, 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 kaput 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 documents that issuers have submitted.

Think of the S-1 Form as a company’s passport to going public. This first step in the rigorous registration process with the SEC provides all the necessary details for the regulator to examine the entity before it offers shares to the public for the first time.

Now, this unexpected diversion raises serious concerns about the schedule as a whole. Although there are others who anticipate the green light by July 8th, the impending US holiday probably adds another layer of wrinkle.

Ethereum is now trading at $3,388. Chart: TradingView

Uncharted Territory: The SEC Takes The Wheel

For issuers and investors alike, the absence of a clear timetable is a major source of discomfort. In contrast to the earlier 19b-4 forms, which required the SEC to make a decision within a certain amount of time, the S-1 filing process allows the regulatory body as much time as it needs. This essentially grants the SEC complete control, allowing them to conduct a comprehensive assessment and submit change requests without feeling rushed.

Although Gary Gensler, the chairman of the Securities and Exchange Commission, has previously suggested that approvals may occur “sometime this summer,” his statements have failed to provide the market with much comfort. The recent snafu with the S-1 forms suggests that even a summer launch may be unduly optimistic.

The Road Ahead

Investors and issuers are currently in a state of uncertainty as a result of the SEC’s recent actions, which have disrupted the timeline. Approval may still occur this summer; however, the absence of clarity suggests that these highly anticipated investment vehicles will face a challenging journey.

Featured image from Pexels, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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