SEC Indicates to Exchanges a Likely Approval for Spot Ethereum ETFs, Listings Expected This Week: Sources
Shayan Chowdhury21 May 20242 min read
The U.S. Securities and Exchange Commission (SEC) is reportedly leaning towards approving exchanges for listing Ethereum spot ETFs (Exchange-Traded Funds). According to sources familiar with the matter and a report by Barron’s, the regulatory body made comments that suggest the approval process is moving forward and could be finalized as early as this week.
SEC Is Finally Approving Spot Ethereum ETFs
A recent report from Barron’s suggests that the SEC has indicated it is likely to approve the first spot Ethereum ETF in the U.S. If the SEC approves VanEck’s application, it could pave the way for spot Ether ETFs from ARK 21Shares, BlackRock, Fidelity, Hashdex, and Invesco Galaxy. Fidelity has already updated its application to specify that the Ether tied to their investment vehicle will not be staked, hinting that this might be a necessary condition for approval.
The United States Securities and Exchange Commission (SEC) has reportedly reached out to major U.S. exchanges to update their applications for listing and trading spot Ether (ETH) exchange-traded funds (ETFs) from asset managers.
According to a May 21 Reuters report, SEC officials contacted Nasdaq, the Chicago Board Options Exchange (CBOE), and the New York Stock Exchange (NYSE) to request updates and changes to existing spot Ether ETF applications ahead of a regulatory deadline. The commission must decide by May 23 whether to approve or deny VanEck’s spot Ether ETF after having delayed the process for 240 days.
ETH Price Breaks $3,800
Over the last 24 hours, ETH price has been pumping hard as it recorded gains over 20%. Buyers are currently aiming for $4,100 as the price hovers around $3.8K.
The exchange applications are seeking SEC approval for a rule change necessary to list new products. However, issuers also need the agency to approve the ETF registration statements before they can start trading.
Unlike the exchange filings, there is no specific time frame for the SEC to make a decision on registration statements, so it could still take several months for Ether ETFs to begin trading.
Standard Chartered’s leading analyst, Geoff Kendrick, expects that the SEC will approve Ethereum exchange-traded funds (ETFs) by the end of this week. This could drive billions of dollars into Ether within the first year, potentially pushing its price to $8,000 by the end of 2024.
Although SEC filings, statements from Chair Gary Gensler, and reports of investigations have indicated a potential denial of spot Ether ETF applications, approval remains possible. The SEC began approving ETH futures investment vehicles in October 2023 and spot Bitcoin ETFs in January 2024.
Notably, investors will be closely monitoring several Federal Reserve speakers today and eagerly awaiting the release of minutes from the latest Federal Open Market Committee meeting on Wednesday.
According to CME’s FedWatch Tool, there is a 96% likelihood that central bankers will maintain steady interest rates in June.
