SEC's Ethereum Classification Is Not Certain For Ethereum ETF Approval To Take Place
Key Points:
Alex Thorn, director of research at Galaxy Digital, suggested that if the SEC does pivot, it could balance recognizing Ethereum itself as not being a security while classifying “staked ETH” as securities. The SEC’s Ethereum classification would align with the agency’s ongoing court cases and investigation findings, possibly allowing for an Ethereum ETF approval without contradicting their previous positions. However, the SEC might prohibit the ETF from staking its ETH holdings.
In preparation for potential approval, the SEC has urged exchanges to expedite their updated 19b-4 filings, indicating a decision could come before a key deadline this Thursday. This step, however, is just one part of the process; potential issuers must also secure approval for their S-1 filings before the product can commence trading.
Bloomberg Intelligence ETF analyst Eric Balchunas tweeted that the SEC aims to return the revised 19b-4 filing for the spot Ethereum ETF by 10 a.m. local time, hinting at a possible approval as early as Wednesday. Seyffart added that the approval of the 19b-4 must be paired with a signed S-1 registration statement for the ETF to launch, a process that could extend for weeks or even months after the initial approval.
As the market anticipates the SEC’s decision, Ethereum’s price has surged to $3,600, marking an 18% increase in the last 24 hours. The SEC’s ruling on the VanEck Spot Ether ETF is expected on May 23, which could be a significant milestone for the cryptocurrency market.
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. |
London, United Kingdom, 25th June 2024, Chainwire
Chicago, United States, 25th June 2024, Chainwire
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