Media: SEC has yet to comment on applications to launch spot ETH ETFs

The documents were submitted to the commission as early as the end of last month

11.06.2024 - 10:22

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What’s new? Investment firms are still yet to receive comments from the US Securities and Exchange Commission (SEC) on their applications to launch Ethereum-based spot exchange-traded funds (ETFs), The Block reports, citing sources. The latest versions of Form S-1 filings to register new securities (fund shares) were sent to the SEC back on May 31, and a response was expected by June 7.

Material by The Block

What else is known? On May 23, the SEC partially approved spot ETH ETFs by approving Form 19b-4 filings to change trading rules. These filings were made by stock exchanges that plan to list the new products. However, S-1 filings from the fund issuers themselves must also be approved before trading can open.

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SEC Chairman Gary Gensler had said that the review of S-1s could take some time, and experts conceded that their approval could be delayed.

At the same time, Gensler said on June 5 that the timing of the launch of ETH funds depends solely on the issuers themselves. In particular, on how quickly they will respond to the agency’s comments and make the necessary changes to the documents.

These filings include information on initial capital and fees, among other things. For example, BlackRock reported raising an initial investment of $10 million, and Franklin Templeton set a management fee of 0,19%.

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According to media sources at several pending firms, initial comments from the commission have not yet been received. The firms are now expecting feedback within this week.

Most of the pending approval issuers are currently already managing similar bitcoin-based products. Local peak daily inflows into spot BTC ETFs peaked at $886,75 million on June 4.

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