Ethereum
Ethereum ETF Decision Looms: What to Watch Today
The cryptocurrency world is holding its breath today as the U.S. Securities and Exchange Commission (SEC) faces a crucial deadline regarding Ethereum (CRYPTO: ETH) 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 Ethereum ETFs be approved today?
Market observers are particularly focused on Forms 19b-4 submitted by various ETF applicants.
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 previous approach of approving multiple Bitcoin ETF applications simultaneously.
Bloomberg Analyst Eric Balchunas anticipates a decision around 4 p.m. Eastern Time based on historical precedent.
If approved, when do the ETFs begin trading?
Even if Forms 19b-4 are approved today, the path forward to trading is not yet clear. Each issuer must also have its S-1 registration statements approved by the SEC.
Industry sources indicate that discussions around these S-1 forms have just begun, which could lead to revisions and delays.
Analyst Eric Balchunas Acknowledges this, stating that it could be “a wild ride” for issuers to finalize their S-1s.
Why is VanEck pushing for “front-of-the-line” approval?
VanEck, the first to file for an ETH ETF in 2021, advocates a “first come, first served” approach.
Matthew Sigelhead of VanEck’s crypto research, says the company deserves to launch its ETF first if its application is approved.
He criticizes the SEC’s simultaneous approval strategy for Bitcoin ETFs, suggesting it has unfairly benefited large incumbents like BlackRock.
Despite remaining hurdles, the SEC’s engagement with exchanges and ETF issuers this week has added to optimism.
The exchanges have already amended their 19b-4 filings in anticipation of a possible launch.
Although negotiations will not begin immediately after approval, the industry is preparing for a quick 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 specific approval requirements will undoubtedly be a key topic of discussion at upcoming industry conferences.
by Benzinga The future of digital assets The event, scheduled for November 19, is expected to bring together leading experts to address these critical questions and explore the future of cryptocurrency ETFs.
Read next: VanEck’s Spot Ethereum ETF Listed on DTCC as SEC Decision Looms
Photo via Shutterstock.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you’ll also receive the ultimate morning update from Benzinga AND a free $30+ gift card!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.