untitled design

The SEC has put forward new requirements for Ethereum-based ETFs

The US Securities and Exchange Commission (SEC) has asked companies to update Form 19b-4 in applications to launch a spot Ethereum ETF. This is reported by CoinDesk with reference to sources.

I also wrote about the regulator’s requirement to amend the documents in an “expedited manner” The Wall Street Journal.

However, the SEC's action does not mean that spot ETH-ETFs will necessarily be approved in May. Prospective issuers must approve Form S-1 before launching the instrument.

According to insiders, one of the issuing companies said it may be on the right track to obtain approval, unlike the situation a few weeks ago when there was no dialogue with the SEC.

Bloomberg stock analysts Eric Balchunas and James Seyffarth raised their odds of approval for a spot Ethereum ETF from 25% to 75% following news that the SEC could take a more favorable stance on the product.

“It is technically possible that the Commission would approve 19b-4 and then slowly play out the S-1 (especially given the reported lack of engagement [с эмитентами]),” said ETF Store President Nate Geraci.

The department is now conducting an investigation to determine whether ether is a security.

Galaxy Research researcher Alex Thorne noted that the SEC may try to find a “middle ground” by dividing Ethereum into two types – non-security and locked in staking, which fits the definition.

“This would be somewhat consistent with their various court cases, as well as reports in some investigations, and perhaps allow the SEC to approve ETH-ETFs while maintaining their previously expressed controversial views,” he added.

According to CLO Variant Fund Jake Czerwinski, the approval of Ethereum funds “will be a shock to people close to the process in Washington.”

“The approval could signal a major shift in US crypto policy following the SAB 121 vote, perhaps more important than the ETFs themselves,” he said.

Dragonfly Managing Partner Haseeb Qureshi convincedthat President Joe Biden intends to soften his attitude towards cryptocurrencies before the elections in order not to lose votes.

Against the backdrop of news about the resumption of dialogue between issuers and the SEC, the price of Ethereum jumped to $3,655 – by 20% per day.

Earlier, Coinbase exchange analyst David Khan called the approval of Ethereum-ETF a matter of time. According to the specialist, the rationale used to approve the Bitcoin ETF also applies to an instrument based on the second largest cryptocurrency by capitalization.

Lawyer Scott Johnsson said the SEC is studying the basis for denying applications for spot Ethereum ETFs. One of them may be assigning the status of a security to an asset.


Source: Cryptocurrency

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular