Ethereum
Unexpected SEC Push for Ethereum ETFs: Urges Exchanges to Accelerate 19B-4 Filings
The U.S. Securities and Exchange Commission has reportedly asked exchanges to update their 19B-4 filings for Spot Ethereum ETFs on an expedited basis. The sudden move, highlighted in a recent Coinbase report, could mean the SEC is preparing to greenlight these ETF applications ahead of a critical deadline this Thursday. The implication is that Ethereum ETFs could go live, which could open up a whole new future for Ethereum and the cryptocurrency market.
SEC Expedited Process
The SEC has asked exchanges interested in listing Ethereum spot ETFs to urgently update their 19B-4 filings.
According to several sources, this request suggests progress towards possible approval. Note that the 19B-4, an exchange filing for rule changes, and the S-1, a registration statement, must be approved before ETFs can be traded.
“Launching tokens at a high fully diluted valuation and low circulating supply may result in dilutions of future releases, which may put selling pressure on the tokens,” the SEC’s decision to accelerate these filings is a surprise, given that she was expected to do so. reject ether ETF deposits.
Analysts Eric Balchunas and James Seyffart noted at Bloomberg Intelligence that the chances of approval of a spot ether ETF had increased from 25% to 75%, signaling the SEC’s friendlier stance.
Regulatory considerations
Despite this optimism, there are still regulatory hurdles to overcome. The SEC has been investigating whether ether, the native asset of the Ethereum blockchain, is a security. This investigation, triggered by Ethereum’s transition from a proof-of-work mechanism to a proof-of-stake mechanism, could impact the SEC’s decision regarding ETF applications.
One recent development that could impact this decision is Prometheum’s soft launch of an ether custody service. This could set a precedent for how digital assets treated as securities are managed and affect the SEC’s view on Ethereum ETFs.
The next few days will be crucial in determining the future trajectory of Ethereum and its role in financial markets.
Impact on the price of ETH and the crypto market?
The news is particularly bullish for Ethereum, whose price surged more than 11% in the past 24 hours to $3,413.17. If approved, Ethereum ETFs could follow the trajectory of Bitcoin, which increased significantly in price after the ETFs were approved in January 2024.
The approval of Ethereum spot ETFs would increase the market value of Ethereum and boost its credibility and popularity among investors.
The SEC’s decision would most likely spark renewed interest in the cryptocurrency sector, spurring innovation and likely growth in the development of more cryptocurrency-based financial products.