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Update 19b-4 Filings as Soon as Possible, SEC Says
Overlords at the Securities and Exchanges Commission have asked exchanges eager to list and trade spot Ethereum ETF shares to quickly update their application filings ahead of an important deadline this Thursday.
Just because the exchanges are updating their precious filings doesn’t mean those spot ether ETFs will get the golden stamp of approval. No, no. There are two filings involved here: the 19b-4 and the S-1. The exchanges must have their S-1 application approved first before getting permission to become spot ether ETF issuers.
Related: Unexpected Grayscale’s Ethereum ETF Withdrawal
And here’s the kicker: in all its bureaucratic glory, the SEC could take an eternity—or maybe just a couple of geological epochs—to approve these S-1 documents. Deadlines? Pfft, the SEC could rank top 3 globally among organizations that set deadlines for others and draw the line when it comes to meeting its own. After all, how many times have they put off the decision to approve Ethereum ETFs?
An insider close to the SEC, previously convinced the regulator was auditioning for the role of bureaucratic tortoise in a fable no one wanted to hear, now feels the commission might be on the fast track to approval. This comes after weeks of feeling like they’d need a séance to get any movement. According to the insider who’s either very optimistic or just really good at make-believe, the SEC seems to have remembered what “expedite” means.
Odds of Approval for Spot Ethereum ETF back to 75%
Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart have increased their projected approval probability for a spot ether ETF to 75%, up from 25%, as of Monday. This adjustment follows indications that the SEC may be adopting a more favorable position toward applications.
In March, probability projections for an Ethereum ETF went down from 75% to 25%; now, they’ve returned to the levels they really deserve. According to the two analysts, the odds of approval are currently due to various factors, including the requirement to submit 19b-4 filings. As mentioned earlier, the requirement comes at the height of a nearing deadline, which is the decision for VanEck’s spot ether ETF coming out on 23rd May 2024.
The Securities and Exchanges Commission is still investigating whether Ether qualifies as a security given its proof-of-stake mechanism. If the native asset of the Ethereum blockchain passes the Howey Test and is deemed a security, the SEC will have no choice but to reject its spot ether ETF applications.
However, if and when they finally give the nod, the launch of the ETF could be a real shot of adrenaline for Ether’s price, according to Andrey Stoychev, head of prime brokerage at Nexo.
More on ETFs:
- What Does Spot Bitcoin ETF Mean for Investors?
- Bitcoin Critically Fell After the ETF Approval. What’s Next?
The prediction follows Ether’s recent performance, which, according to CoinMarketCap, skyrocketed over 21% in the past 24 hours to reach a two-month high of $3,771.
Apparently, Ether decided it was tired of napping and pulled an all-nighter to impress the crypto crowd.
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