The SEC requested that exchanges update their spot Ether ETF applications
Crypto News– 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 the Nasdaq, the Chicago Board Options Exchange (CBOE), and the New York Stock Exchange (NYSE) to update and modify existing spot Ether ETF applications before a regulatory deadline. By May 23, the commission must decide whether to approve or deny VanEck’s spot Ether ETF after a 240-day delay.
Requesting U.S. exchanges to make these updates could signal potential regulatory approval. On May 20, two ETF analysts increased their prediction of the SEC approving a spot Ether ETF from 25% to 75% after hearing speculation that applicants should prepare to expedite their 19b-4 filings. The exchanges must submit 19b-4 filings and S-1 registration statements with the SEC before any spot Ether ETFs can be listed.
The SEC has asked exchanges to provide updates to their spot Ether ETF applications
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 S-1 filing to specify that the Ether tied to its investment vehicle will not be staked, indicating that this might be a necessary condition for approval.
Previously, SEC filings, public statements from Chair Gary Gensler, and reports of investigations suggested that the commission might deny spot Ether ETF applications, which remained a possibility at the time of publication. The SEC began approving investment vehicles tied to ETH futures in October 2023 and spot Bitcoin ETFs in January.
FAQs
Why did the SEC contact exchanges regarding their spot Ether ETF applications?
The SEC contacted exchanges to request updates and changes to their existing spot Ether ETF applications, potentially signaling a move towards regulatory approval.
Which exchanges were contacted by the SEC?
The SEC reached out to the Nasdaq, the Chicago Board Options Exchange (CBOE), and the New York Stock Exchange (NYSE).
What might the updates to the spot Ether ETF applications involve?
The updates could involve modifications to comply with specific regulatory requirements or conditions that the SEC deems necessary for potential approval.
For the latest in crypto updates, keep tabs on Crypto Data Space.
Leave a comment