Leading exchanges in the U.S. are reportedly being asked by the SEC to update important documents related to Ethereum spot-based exchange-traded funds (ETFs). Reuters, citing three sources familiar with the matter, reported that the SEC’s request to quickly update their filings suggests that the agency could approve the ETF filings. By May 23, the SEC will decide whether to approve or deny CBOE’s application to list Ethereum ETF shares from Ark Investments/21Shares and VanEck.
This comes as a surprise, as the SEC had previously shown little engagement with exchanges and issuers regarding ETF filings. Speculations arose that the agency could deny these applications, especially considering the recent scrutiny of past Ethereum-related transactions. However, the SEC’s request to modify the filings has sparked renewed optimism.
Nevertheless, this request does not guarantee immediate approval and listing of the Ethereum ETFs. Asset management companies, including VanEck, still need the SEC’s approval for their S-1 applications. Nate Geraci, co-founder of The ETF Institute, emphasized that both the exchange filings and S-1 applications must be approved for spot-based Ethereum ETFs to commence trading in the United States.
There is a possibility that the SEC could approve the exchange filings but delay its decision on the S-1 applications, given its limited engagement with prospective issuers. However, Bloomberg’s ETF analysts, Eric Balchunas and James Seyffart, have increased the odds of the SEC approving the exchanges’ applications to list Ethereum ETFs to 75%, up from their previous forecast of 25%.
In the meantime, Fidelity Investments, a top asset manager, has amended its S-1 application for a spot-based Ethereum ETF. The updated filing removed any mention of staking, indicating that the SEC may not permit staking.
The news has had a positive impact on the price of Ethereum, which has risen by 23.1% over the past 24 hours to reach $3,795, benefiting from the broader market resurgence.
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