The cryptocurrency world holds its breath today as the US Securities and Exchange Commission (SEC) faces a crucial deadline regarding Ethereum ETH/USD exchange-traded funds (ETFs).
With applications from several issuers on the table, investors are eager to see if the long-awaited regulatory green light will be granted.
Will The Ethereum ETFs Be Approved Today?
Market observers are particularly focused on the 19b-4 forms submitted by various ETF hopefuls.
The SEC has until today to make a decision on these forms for VanEck’s Ethereum ETF.
Analysts are optimistic about a potential approval, citing the SEC’s prior approach of approving multiple Bitcoin ETF applications simultaneously.
Bloomberg analyst Eric Balchunas anticipates a decision around 4 p.m. Eastern Time, based on historical precedents.
If Approved, When Do The ETFs Start Trading?
Even if the 19b-4 forms are approved today, the road to trading isn’t clear yet. Each issuer must also have their S-1 registration statements greenlit by the SEC.
Industry sources indicate discussions revolving around these S-1 forms have just begun, potentially leading to revisions and delays.
Analyst Eric Balchunas acknowledges this, stating it could be “a mad scramble” for issuers to finalize their S-1s.
Why Does VanEck Push For “First-in-Line” Approval?
VanEck, the first to file for an ETH ETF in 2021, is advocating for a “first-come, first-served” approach.
Matthew Sigel, VanEck’s crypto research head, argues that the firm deserves to launch its ETF first if their application is approved.
He criticizes the SEC’s simultaneous approval strategy for Bitcoin ETFs, suggesting it unfairly benefitted large incumbents like BlackRock.
Despite the remaining hurdles, the SEC’s engagement with stock exchanges and ETF issuers this week has boosted optimism.
Stock exchanges have already amended their 19b-4 documents in anticipation of a potential launch.
While trading wouldn’t commence immediately upon approval, the industry is preparing for a swift response if the SEC gives the green light.
Looking Ahead: Benzinga’s Future Of Digital Assets Event
The evolving regulatory landscape surrounding crypto ETFs and the specific requirements for approval will undoubtedly be a key topic of discussion at upcoming industry conferences.
Benzinga’s Future of Digital Assets event, scheduled for Nov. 19 is expected to bring together leading experts to delve into these critical issues and explore the future of cryptocurrency ETFs.
Read Next: VanEck’s Spot Ethereum ETF Listed On DTCC As SEC Decision Looms
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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