Ethereum ETF Approval: Here’s What You Need to Know About Today’s Deadline
The post Ethereum ETF Approval: Here’s What You Need to Know About Today’s Deadline appeared on BitcoinEthereumNews.com.
Approval odds have shifted to 75% from 25% just last week. There’s one question that’s front and center in the crypto industry today: Will the spot Ethereum ETFs be approved? Today, May 23, is a key date for the spot Ethereum Exchange Traded Fund (ETF) approval process as the U.S. Securities and Exchange Commission (SEC) is set to decide on VanEck’s spot Ethereum ETF application, the first among several similar applications. The expectation is that if the U.S. securities regulator approves the VanEck product, it will approve the other petitions. It may even approve them all at the same time, as the agency did with the Bitcoin products. Investors expect spot Ethereum ETFs will open the floodgates to billions of dollars in inflows from institutional investors, which has driven the ETH price to rally over 27% in the past week, ahead of the decision. However, even if approved, that doesn’t mean Ethereum ETFs will start trading immediately. According to Bloomberg Intelligence analyst James Seyffart, “there are broad misconceptions that ‘approvals’ mean immediate launches of the Ethereum ETFs. This isn’t necessarily the case. There will be days (at a minimum), likely at least weeks, and potentially months between approval and launches here.” ETF Approval Steps Before Ethereum ETFs start trading the SEC has to approve two forms filed by applicants, 19b-4 and S-1. The S-1 form is a registration statement used by companies to provide information about their financial condition, risk factors, and business operations, before going public. In contrast, Form 19b-4 is specifically designed for the approval of rule changes by self-regulatory organizations (SROs) like stock exchanges. “When it comes to ETFs, 19b-4 form is used to propose and detail the specific structure, mechanics, and operational guidelines of the ETF, directly impacting whether the SEC will approve the product for…
Filed under: News - @ May 23, 2024 5:20 pm