SEC Asks Exchanges To Update Filings As Spot Ether ETFs See Abrupt Progress

Crypto Daily - The United States Securities and Exchange Commission (SEC) has asked US exchanges to update their 19B-4 filings on an accelerated basis ahead of a crucial deadline this week.

The Securities and Exchange Commission was expected to reject the spot Ethereum ETF filings, and while approval is not guaranteed, the latest developments suggest progress is being made.

SEC Asks To Update Filings

The SEC’s move to ask applicants to update their filings has sparked speculation that the market regulator may approve spot Ethereum ETF applications ahead of a crucial deadline. While there is no approval guarantee, the move indicates progress has been made.

“JUST IN: SEC asks exchanges to update 19B-4 filings on an accelerated basis for Spot Ethereum ETFs, CoinDesk reports.”

Spot Ethereum ETF issuers will also need their S-1 applications approved before the spot ETFs can begin trading. According to one source, the SEC could take an indefinite amount of time to approve the S-1 documentation as they are not bound by a deadline. The development is significant as it could allow ETH to follow Bitcoin and establish its own spot ETF. The SEC has previously been adamant about delaying their decision regarding spot Ethereum ETFs.

Odds For Approval Raised

One of the applicants engaged with the Securities and Exchange Commission stated that the ETF could be on track for approval. This marks a stark change from some weeks ago when it was largely perceived the SEC was dragging its feet regarding the approval of a spot Ethereum ETF. Meanwhile, Bloomberg Intelligence ETF analysts James Seyffart and Eric Balchunas raised their odds for the approval of a spot Ethereum ETF to 75% from the initial 25%, bolstering the perception that the SEC could be adopting a more favorable stance towards the spot Ethereum ETF applications. However, both analysts later corrected their statements, clarifying that the odds were related to the 194-b approvals.

“Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (an increasingly political issue), so now everyone scrambling (like we everyone else assumed they’d be denied).”

SEC’s Stance On Ether

The United States Securities and Exchange Commission has been investigating if ETH, the native token of the Ethereum blockchain, is a security. The regulator launched a formal inquiry after Ethereum transitioned from a Proof-of-Work consensus mechanism to a Proof-of-Stake consensus mechanism. If the SEC determines that ETH is a security, the regulator would likely reject the spot Ether ETF applications.

ETH Soars On News

Meanwhile, data from CoinMarketCap showed that Ethereum (ETH) registered a considerable increase of 16% over the past 24 hours. The asset is currently trading above $3600, its highest level since September 2022.

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