The U.S. Securities and Exchange Commission (SEC) has instructed exchanges to revise their filings for spot Ethereum exchange-traded funds (ETFs). Bloomberg Intelligence ETF analyst Eric Balchunas shared this development, indicating that the SEC is urging applicants to submit new Form 19b-4 filings promptly to propose a rule change.
This move is seen as a positive sign by analysts, suggesting a higher likelihood of Ethereum ETF approval before the Thursday deadline. Balchunas and fellow Bloomberg analyst James Seyffart estimated the approval odds to have risen significantly from 25% to 75%. However, this prediction was made prior to the updated Form 19b-4 request.
Nate Geraci, president of The ETF Store, highlighted the necessity for SEC approval of both Form 19b-4s and S-1s, which are essential for exchange rule changes and registration statements, paving the way for ETF launches.
While some in the crypto community anticipate approval, Balchunas cautioned against wishful thinking. Jake Chervinsky, Chief Legal Officer at Variant Fund, noted that an approved spot ETH ETF would signal a potential shift in U.S. crypto policy, particularly following the SAB 121 vote.
Echoing Chervinsky’s sentiment, Seyffart highlighted the surprise factor, stating that many in Washington, D.C., had anticipated a denial. Additionally, there’s speculation that the Biden administration could adopt a more crypto-friendly stance post-ETF approvals, with former CFTC commissioner Chris Giancarlo suggesting that Donald Trump could be remembered as the “First Crypto President.”
