Ethereum ETF Approval Chances Rise as SEC Requests New Filings
Hongji Feng
Last updated: May 21, 2024 02:24 EDT | 1 min read
The U.S. Securities and Exchange Commission (SEC) has instructed exchanges to update their filings for spot Ethereum exchange-traded funds (ETFs).
In a recent post by Eric Balchunas, an ETF analyst at Bloomberg Intelligence, it was revealed that the SEC is asking applicants to file new Form 19b-4 in an expedited manner to inform the Commission about a proposed rule change.
Analysts estimate that the odds of approval for an Ethereum ETF have significantly increased from 25% to 75%. This prediction was made before the updated Form 19b-4 request.
Nate Geraci, the president of the ETF Store, stated in a social media post that the SEC must approve both the 19b-4s and S-1s for exchange rule changes and registration statements in order for the ETFs to launch.
While some in the crypto community have been anticipating approval, Balchunas believes this is merely wishful thinking.
“If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who’s close to this process,” said Jake Chervinsky, Chief Legal Officer at Variant Fund. “That doesn’t mean it won’t happen.”
“It means approval could signal a major shift in US crypto policy after the SAB 121 vote, perhaps more important than the ETF itself,” Chervinsky added.
James Seyffart, another ETF analyst at Bloomberg, agreed with Chervinsky’s statement, saying, “This is the correct take. I was literally in DC last week for @PerianneDC’s Blockchain Summit and almost every single person I spoke to said that it was going to be denied.”
Once the ETFs are approved, the Biden administration could be seen as more crypto-friendly. Former CFTC commissioner Chris Giancarlo recently referred to Donald Trump as the “First Crypto President” who is seeking re-election.