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The U.S. Securities and Exchange Commission (SEC) has asked U.S. exchanges to quickly update their 19B-4 filings ahead of an important deadline this week.
The Securities and Exchange Commission was expected to reject the filing of a spot Ethereum ETF, and while approval is not guaranteed, progress is being made, according to the latest developments.
SEC Requests Filing Updates
The SEC's move to ask applicants to update their filings has sparked speculation that the market regulator may approve applications for a spot Ethereum ETF ahead of a key deadline. Although approval cannot be guaranteed, this move represents progress.
“Position: SEC asks exchanges to quickly update 19B-4 filings for spot Ethereum ETFs, CoinDesk reports.”
Issuers of spot Ethereum ETFs must obtain S-1 application approval before the spot ETF can begin trading. According to one source, the SEC may take an indefinite amount of time to approve the S-1 document because there is no set deadline. This development is significant as it allows ETH to follow Bitcoin and establish its own spot ETF. The SEC has previously been adamant about delaying a decision on a spot Ethereum ETF.
Your chances of approval have increased.
One of the applicants before the Securities and Exchange Commission said ETF approval could proceed smoothly. This is a stark change from just a few weeks ago, when it was widely acknowledged that the SEC was experiencing delays in approving a spot Ethereum ETF. Meanwhile, Bloomberg Intelligence ETF analysts James Seyffart and Eric Balchunas increased the probability of spot Ethereum ETF approval from an initial 25% to 75%, reinforcing the perception that the SEC may adopt a more favorable stance on spot Ethereum ETF applications. . However, both analysts later revised their statements to clarify that the odds were related to the 194-b approval.
“Update: @JSeyff and I are increasing the probability of spot Ether ETF approval to 75% (up from 25%). Now everyone is confused because we heard this afternoon that the SEC may do a complete 180 on this (an increasingly political issue). (Just as we all thought it would be rejected).”
SEC's Position on Ethereum
The U.S. Securities and Exchange Commission has been investigating whether ETH, the native token of the Ethereum blockchain, is a security. Regulators have launched a formal investigation after Ethereum switched from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism. If the SEC determines that ETH is a security, regulators will likely reject applications for a spot Ether ETF.
ETH soars on news
Meanwhile, Ethereum (ETH) has recorded a significant increase of 16% in the last 24 hours, according to data from CoinMarketCap. The asset is currently trading above $3600, its highest level since September 2022.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
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