SEC Requests Faster Filings for Ether ETFs
The U.S. Securities and Exchange Commission (SEC) has asked exchanges that want to list ether exchange-traded funds (ETFs) to update their 19b-4 filings quickly. This request came ahead of a key deadline this week. The SEC usually takes a long time to approve these filings, but this sudden move suggests they might be making progress.
Three people familiar with the situation told CoinDesk that the SEC’s request could mean that they are moving closer to approving these applications. However, there’s still no guarantee that the ether ETFs will be approved. The issuers also need to get their S-1 applications approved before the ETFs can start trading.
No Guarantee of Approval
Even though the SEC has asked for the 19b-4 filings to be updated quickly, it doesn’t mean the ETFs will definitely be approved. The SEC can take an indefinite amount of time to approve the S-1 documents, according to one person familiar with the matter. This means that the approval process for ether ETFs is still uncertain.
One company in talks with the SEC said it feels more hopeful about approval now than it did a few weeks ago. Back then, it seemed like the SEC was dragging its feet. Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart have also changed their view. They now think there’s a 75% chance that the SEC will approve a spot ether ETF, up from their previous estimate of 25%.
Bloomberg Analysts Increase Approval Odds
Bloomberg analysts Eric Balchunas and James Seyffart initially said there was a 75% chance of the SEC approving a spot ether ETF. They later clarified that this prediction was about the 19b-4 approvals, not the final approval of the ETFs themselves. The SEC is expected to make a decision on the VanEck spot ether ETF by May 23rd.
The SEC has been investigating whether ether, the main asset of the Ethereum blockchain, is a security. This investigation started after Ethereum moved from a proof-of-work consensus mechanism to a proof-of-stake mechanism. If the SEC decides that ether is a security, it could be a reason to reject the ether ETF applications.
SEC’s Investigation into Ether
The SEC’s investigation into whether ether is a security could have a big impact on the approval of ether ETFs. If the SEC determines that ether is a security, it might reject the ETF applications. This decision is crucial because it affects how ether and other digital assets are regulated in the U.S.
Prometheum, a special purpose broker, recently launched its ether custody service. This company plans to offer custody and trading services for other digital assets, especially those treated as securities in the U.S. The SEC’s decision on whether ether is a security will play a significant role in the future of these services.Conclusion
The SEC’s request for faster updates to 19b-4 filings suggests some progress in the approval process for ether ETFs. However, there’s still no guarantee that these ETFs will be approved. The SEC’s ongoing investigation into whether ether is a security adds another layer of uncertainty. Companies and analysts are watching closely, as the outcome will have a significant impact on the digital asset market.
As we wait for the SEC’s decision, the future of ether ETFs remains uncertain. The approval process involves multiple steps, and the SEC’s investigation into ether’s status as a security could complicate matters further. For now, both companies and investors are hopeful, but they remain cautious about the final outcome.
