The U.S. Securities and Exchange Commission (SEC) has asked asset managers aiming to launch spot Ethereum exchange-traded funds (ETFs) to update and refile their essential documents, according to multiple reports. These filings, known as Form 19b-4, are crucial for informing the SEC about proposed rule changes and require the agency’s approval before spot Ethereum ETFs can become effective.
Key Developments:
- Form 19b-4 Filings: These documents notify the SEC about proposed rule changes and are among the necessary steps before a spot Ethereum ETF can commence trading.
- SEC’s Directive: The SEC’s Trading and Markets Division reportedly informed asset managers to amend and refile their 19b-4 filings, as reported by The Wall Street Journal, citing unnamed sources. CoinDesk also noted that exchanges have been asked to expedite their filings.
- Optimistic Outlook: Following this development, analysts James Seyffart and Eric Balchunas from Bloomberg have increased their approval probability for a spot Ethereum ETF from 25% to 75%. This marks a significant shift in the perceived likelihood of the product gaining approval.
- Historical Context: Earlier this year, when spot Bitcoin ETFs were approved, the SEC first approved the 19b-4 forms before the issuers’ registration statements became effective, allowing trading to begin.
- SEC’s Stance: An SEC spokesperson told The Block that the agency does not comment on individual filings, maintaining its usual discretion regarding ongoing regulatory processes.
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Disclaimer
The information provided in this blog is based on current reports and publicly available information. It does not constitute financial advice or an official statement from the SEC or any other regulatory body. Readers are encouraged to conduct their own research and consult with professional financial advisors before making any investment decisions.
This development marks a crucial step for asset managers and investors closely monitoring the progress of spot Ethereum ETFs. The increased optimism among analysts and the expedited filing process suggest a growing momentum toward potential approval. However, as with all regulatory matters, the outcome remains uncertain until official confirmation is provided by the SEC.