Tech
US SEC opens Ethereum S-1 ETF registration discussions with issuers
The US Securities and Exchange Commission (SEC) has opened negotiations with the potential candidate Spot ETF on Ethereum issuers on their recently filed S-1 registration documents.
This move increased market optimism, triggering a surge in the price of Ether. Furthermore, all cryptocurrency market observers expect greater institutional adoption and price increases after the approval of the Ethereum ETF.
SEC begins initial discussions
In a May 23 X post, prominent Fox Business journalist Eleanor Terrett revealed that the SEC had begun discussions on Ethereum ETFs.
While citing anonymous sources, the journalist noted that the the conversations revolve on the S-1 registration forms of prospective issuers. The sources also said there is still “work to be done” on the submitted forms.
According to another unknown source, the Investment Management Division seemed unprepared for the change. While these early discussions are not expected to halt progress towards an Ethereum ETF, the source remained cautiously optimistic.
Additionally, the SEC must approve Forms 19b-4 to gain approval for Ethereum spot ETFs. Notably, the regulator followed the same comprehensive order in its approval process for Bitcoin ETFs.
With the agency’s approval of the forms, the S-1 registration documents must go into effect. This will allow the launch of trading of the ETH ETF. Additionally, forms go through a series of editing stages before getting final approval.
Meanwhile, Fidelity recently filed an amended Form S-1. With ongoing discussions about S-1 forms, additional potential amendments may follow.
Additionally, Matthew Sigel, head of digital asset research at VanEck, he reacted to the event thread for the ETFS. He expressed disappointment that the SEC usually issues multiple approvals on the same day, allowing trading at the same time.
Additionally, Sigel expected the regulator to maintain a one-on-one pattern, following the sequence of dates submitted.
The cryptocurrency market remains optimistic about ETH ETFs
The SEC has set a deadline for its decision regarding VanEck’s Ethereum ETF spot ETF 19b-4 form. Starting discussions with potential issuers could be a positive step.
Several observers and market participants are optimistic about getting spot ETH ETFs. Speculation has had a positive impact on the price of Ether amid the bearish trend in the broader market.
Eric Balchunas, senior ETF analyst at Bloomberg, commented on the process. An announcement from the SEC is expected around 4 PM ET on May 23.
Balchunas’ predictions were similar to the SEC’s model for the Bitcoin ETF announcement around 3:45 pm ET.
Additionally, Daniel Yan, co-founder of Matrixport, he gave three scenarios and possible implications regarding the approval of ETH ETFs. First, expect a sell response if the SEC will only approve Forms 19-b4.
The second case could trigger “very bullish” market sentiment once the regulator approves both Forms 19-b4 and S-1. Finally, rejection of Forms 19-b4 could cause a “very bearish” impact.
At 08:07 EST on May 23, Ethereum trades to $3,916, indicating a 5.60% rally over the past 24 hours. Furthermore, its market capitalization currently stands at $470.76 billion.
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