- The U.S. Securities and Exchange Commission is requesting that exchanges revise their 19b-4 filings as soon as possible.
- Ahead of a crucial deadline this week, the U.S. Securities and Exchange Commission (SEC) requested that prospective exchanges for ether-backed exchange-traded funds update their 19b-4 filings.
- The SEC was originally anticipated to reject the ether ETF registrations; nonetheless, the action indicates that things are moving in the right direction even though approval is not certain.
Regulators have suddenly requested that exchanges that wish to list and sell shares of spot ether (ETH) exchange-traded funds alter important documents pertaining to these products.
According to uncofirmed source, the U.S. Securities and Exchange Commission is asking exchanges to update 19b-4 files on an accelerated basis. This suggests that the agency may be working to approve these applications ahead of a crucial deadline this Thursday.
However, that does not imply that the ETFs will be approved. Before the products might go on sale, prospective issuers must also get their S-1 applications approved. The SEC may take as long as necessary to accept the S-1 documents because there is no time limit.
One company in talks with the SEC stated that it feels as though it might be headed toward approval, which is a change from believing a few weeks ago that the SEC was taking too long.
On Monday, Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart increased their likelihood of a spot ether ETF being approved from 25% to 75% after hearing rumors that the SEC would be considering the applications more favorably.
Subsequently, they said that the odds were connected to the 19b-4 approvals, revising their earlier assertion. On May 23, the SEC is anticipated to render a verdict regarding the VanEck spot ether ETF.
The primary native asset of the Ethereum network, ether, has been the subject of an official investigation by the SEC. This investigation was initiated following the network’s transition from a proof-of-work consensus method to a proof-of-stake mechanism.
The SEC’s decision to reject the spot ether ETF applications could have something to do with the fact that it believes ether to be a securities.
A recent test of the agency’s stance on the security of ETH has surfaced at Prometheum. On Monday, the special purpose broker declared that its ether custody service had gone live in a soft launch.
In the future, the company hopes to introduce trading and custody services for additional digital assets, particularly those that are regarded as securities rather than commodities in the United States.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
