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Spot Ethereum ETF 19b-4 Filings Expected To Be Approved This Week

Key Points:

The SEC is expected to decide this week on the approval of a spot Ethereum ETF, potentially boosting mainstream adoption.
Both 19b-4 filings and S-1 forms need approval, with possible delays due to the complexities of cryptocurrency.

The U.S. Securities and Exchange Commission (SEC) is expected to make a decision this week regarding the approval of a spot Ethereum exchange-traded fund (ETF), according to Nate Geraci, President of The ETF Store. This decision is eagerly anticipated as it could significantly impact the mainstream adoption of Ethereum.

Spot Ethereum ETF 19b-4 Filings Expected To Be Approved This Week 2

SEC Decision on Spot Ethereum ETF Expected This Week

For these ETFs to be legally available to the public, the SEC must approve both the 19b-4 filings and the S-1 forms. The SEC typically has a 45-day statutory period, which can be extended up to 240 days, to make an initial decision on the 19b-4 filings. Approval of these filings would technically allow the ETFs to be listed on exchanges.

However, without the approval of the S-1 forms, the ETFs cannot be sold to investors. Geraci noted that the SEC could “slow play” the approval of the S-1s, potentially delaying the process as they take longer to review these documents due to the complexities and risks associated with cryptocurrency products.

The outcome of the SEC’s decision on spot Ethereum ETFs is crucial. An approval could enhance the regulated and safer investment environment for individuals interested in cryptocurrency, while a delay or denial might highlight persistent regulatory concerns.

Market Predictions and Potential Impact on Ethereum ETFs

Crypto exchange Coinbase estimates the chances of SEC approval for spot Ethereum ETFs by the end of the month to be 30% to 40%. The SEC faces different decision deadlines for each application, starting with VanEck’s on May 23 and extending to August for applications from BlackRock and Fidelity.

SEC Chair Gary Gensler previously cited a lawsuit from Grayscale over the proposed conversion of GBTC as a factor in the agency’s approval of spot Bitcoin ETFs. However, Grayscale has not indicated plans to file a similar lawsuit concerning spot Ethereum ETFs.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.