Leading exchanges seeking to list Ethereum spot-based exchange-traded funds (ETFs) have been asked by the U.S. Securities and Exchange Commission (SEC) to update important documents related to the product, according to Reuters. The SEC’s request, which comes ahead of a crucial deadline, suggests that the filings could be approved. On Thursday, May 23, the SEC will decide whether to approve or deny CBOE’s application to list Ethereum ETF shares from Ark Investments/21Shares and VanEck.
Previously, the SEC had limited engagement with exchanges and issuers regarding ETF filings, leading to speculation that the agency might deny these applications. However, the SEC’s recent request for document updates indicates a change in approach. It’s important to note that this request does not guarantee approval and listing this week, as asset management companies still require the SEC’s approval for their S-1 applications.
Nate Geraci, co-founder of The ETF Institute, explained that both the exchange filings and S-1 applications need to be approved by the SEC for spot-based Ethereum ETFs to begin trading in the United States. He speculated that the SEC might approve the exchange filings but delay its decision on the S-1 applications due to its limited engagement with issuers. Bloomberg’s ETF analysts have increased the odds of the SEC approving exchanges’ applications to list Ethereum ETFs to 75%.
Fidelity Investments, a top asset manager, has amended its S-1 application for a spot-based Ethereum ETF. The company removed references to staking in its updated filing, indicating that the SEC may not permit staking. The price of Ethereum has reacted positively to this news, rising 23.1% over the past 24 hours to $3,795.
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