Ethereum ETF Approval Odds Soar as SEC Requests Updated Filings
Hongji Feng
Updated: May 21, 2024 02:24 EDT | 1 min read
The U.S. Securities and Exchange Commission (SEC) is mandating exchanges to revise their spot Ethereum exchange-traded fund (ETF) filings.
In a recent report shared by Bloomberg Intelligence ETF analyst Eric Balchunas, it was revealed that the SEC is instructing applicants to submit new Form 19b-4 filings on an “accelerated basis” to notify the Commission of a proposed rule change.
Analysts Predict High Chance of Spot Ethereum ETF Approval
The report suggests that this move indicates the SEC’s inclination to approve the Ethereum ETF applications before the Thursday deadline, potentially leading to the issuance of the second spot digital asset ETF in the United States.
Balchunas and fellow Bloomberg ETF analyst James Seyffart estimated that the likelihood of Ethereum ETF approval has significantly increased from 25% to 75%. This prediction was made prior to the request for updated Form 19b-4 filings.
Nate Geraci, president of the ETF Store, stated in a social media post that the SEC must approve both the 19b-4s and S-1s for exchange rule changes and registration statements in order for the ETFs to be launched.
While some in the crypto community have been anticipating approval, Balchunas believes it is merely wishful thinking.
Potential Shift in US Crypto Policy
“If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who’s close to this process,” said Jake Chervinsky, Chief Legal Officer of Variant Fund. “That doesn’t mean it won’t happen.”
“This could signal a major shift in US crypto policy after the SAB 121 vote, perhaps even more significant than the ETF itself,” added Chervinsky.
Seyffart echoed Chervinsky’s statement, saying, “This is the correct perspective. I was in DC last week for @PerianneDC’s Blockchain Summit, and nearly everyone I spoke to believed it would be denied.”
Once the ETFs are approved, the Biden administration may adopt a more crypto-friendly stance. Former CFTC commissioner Chris Giancarlo recently referred to Donald Trump as the “First Crypto President” and stated that he is running for re-election.
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