The deadline for Ethereum spot ETFs to be approved or rejected by the SEC is getting closer.
The US Securities and Exchange Commission (SEC) is due to announce on May 23 its decision on whether to approve or reject VanEck's application to launch an Ethereum spot ETF on the US market. A day later, on May 24, the securities regulator is due to decide on the application submitted by Ark Invest and 21Shares for another ether exchange-traded fund.
As these dates approach, Bloomberg analysts Eric Balchunas and James Seyffart, increased their chances of approval of US Ethereum spot ETFs at 75%.
In X, Balchunas commented that he and his colleague have heard several rumors about the Possible 180º turn that the SEC may give in relation to ether exchange-traded funds.
Until now, the lack of comments from the securities regulator was seen as a negative signal for the launch of these cryptocurrency investment vehicles. However, it seems that the SEC is taking a more cautious approach and could implement a new tactic for the possible approval of these financial vehicles.
SEC requests expedited update of 19b-4
On Monday, the SEC asked exchanges on which Ethereum spot ETFs will be listed for approval for an update to their 19b-4 filings.
Nate Geraci, co-founder of ETF Institute and president of ETF Store, explained that these filings are made to signal the rule change in stock exchanges that want to introduce new investment products.
Regarding the SEC's request for updates to these filings, which was made earlier this week, Geraci commented that it is possible that the securities regulator is considering approving them, and allowing exchanges to list Ethereum ETFs. However, the ETF expert also explained that, for the final approval of Ethereum ETFs, the SEC must also approve S-1 filings, which are sent by issuers or fund managers to describe the structure and operations that the new ETFs will have.
At this point, Geraci believes the SEC may be considering implementing a delay tactic, approving exchanges' 19b-4 filings and delaying approval of fund managers' S-1 filings.
“It is technically possible for the SEC to approve 19b-4 and then slow-play S-1 (especially given the lack of engagement reported here)”, Geraci commented on X.
BlackRock's role in the possible approval of Ethereum spot ETFs
Although several experts, such as Balchunas, Seyffart and Geraci, believe that the SEC has little interest in approving the launch of investment funds based on Ethereum, investors believe that BlackRock could play a key role in the approval.
On X, one user commented on BlackRock’s impressive 99,8% fund approval record. In January, prior to receiving approval for the Bitcoin spot ETF IBIT, BlackRock had a total of 575 fund approvals and only one rejection from the SEC.
Expectations over the possible approval of Ethereum spot ETFs are driving up the price of ETH, which is up more than 19% in the past few hours, and 25% in the past week, according to data from CoinMarketCap. The price of ETH, at the time of writing, is $3.680.
Source: CoinMarketCap
For experts, the approval of Ethereum ETFs could boost the adoption curve of cryptocurrencies in general, legitimizing this new class of digital assets in the market.
On the other hand, although the SEC is expected to announce its decision on the possible approval of Ethereum spot ETFs, X user @QeYcc said that the regulator could possibly extend the review process for S-1 filings and “not necessarily say anything specific about ETH ETFs on May 23.”
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