ETFs
SEC Approval for Spot Ethereum ETFs Depends on 19b-4 Filings
ETF Shop President Nate Geraci offers insight as the SEC’s decision on Ethereum spot ETFs nears, with approval contingent on SEC approval for 19b-4 (rule changes exchange) and S-1 (registration statements).
SEC decision deadline this week on spot eth ETFs…
The SEC must approve both 19b-4s (exchange rule changes) and S-1s (registration statements) for the launch of ETFs.
Technically possible for the SEC to approve 19b-4s and then slow-play S-1s (especially given the lack of engagement reported here).
-Nate Geraci (@NateGeraci) May 19, 2024
Spot Ethereum ETFs directly hold Ether as assets and trade like stocks on an exchange, requiring a crucial 19b-4 filing to list on the NYSE or Nasdaq and seek SEC approval. The S-1 filing offers detailed information about the ETF’s structure, management and Ethereum replication strategy.
The SEC must approve both filings for public ETF sales. The legal review period is generally 45 days, extendable to 240 days. However, delays are possible, particularly in S-1 approvals, reflecting caution in the face of cryptographic complexities.
The approval could propel the adoption of Ethereum, providing regulated investment opportunities. Conversely, a delay or refusal may signal ongoing regulatory issues. Ethereum price saw a partial rebound to $3,100 over the weekend as the decision approached.
The SEC’s cautious approach to crypto’s complexities could prolong the approval process, impacting market sentiment and widespread adoption of Ethereum.
Read also: SEC likely to reject Spot Ethereumm ETFs, say Bloomberg analysts