The highly anticipated Ethereum Spot exchange-traded funds (ETFs) are set to reach a crucial crossroads this week as ETF Store President Nate Geraci announced. revealed that the U.S. Securities and Exchange Commission (SEC) is expected to issue a final ruling on exchange-traded funds within the week.
Ethereum Spot ETF decision looms
Since the SEC’s decision may have a significant impact on the direction of investments in Ethereum, Nate GeraciThe revelation of has raised expectations in the cryptocurrency and investment landscape.
Geraci highlighted 19b-4s (stock exchange rule amendments) and S-1s (registration statements) as the two main elements of the SEC’s review process. According to the expert, before Ethereum spot ETFs can be launched, the regulatory watchdog must accept both filings.
When a national securities exchange, such as the NYSE or Nasdaq, wants to launch new products or change rules, it submits a filing to the SEC called 19b-4s (Exchange Rule Changes). For spot ETH ETFs, exchanges must obtain SEC approval on 19b-4 before listing the products and integrating them into their trading platforms.
Meanwhile, S-1s, or registration statements, are the first registration forms required for securities newly sold to the public. They give the agency and potential investors complete details about the financial condition, management and business operations of the company.
In the case of ETH Spot ETF, this brief will cover the administration, structure and strategy of the fund to emulate the performance of Ethereum. Thus, for the products to be legally offered to the general public, both S-1s and 19b-4s must be approved by the SEC, given the importance of both filings.
Although Geraci is confident the Commission could approve 19b-4s, he believes S-1s could see slow play from the agency, and without S-1 authorization, the funds cannot be legally permitted to be sold to investors.
Given the lack of commitment, this could involve an extended period of evaluation and approval of these documents by the agency. Since then, the SEC’s lack of engagement has negatively impacted the funds, raising questions and doubts about its approval.
SEC Approval or Prosecution
It is worth noting that Nate Geraci is one of the leading figures in the crypto industry who is pessimistic about the approval of spot ETH ETFs by the SEC. Geraci previously suggests to the agency’s eerie silence and lower level of engagement as a potential setback for the fund’s authorization in May.
While this makes sense, Geraci wonders if the SEC has learned a lesson from the clown show when it comes to spot Bitcoin ETFs. As a result, he highlighted Commission approval or legal action as two potential outcomes for spot ETH ETFs.
Currently, the chances of product acceptance are significantly reduced before the May deadline. Data market prediction Polymarket shows that the chance of approval now stands at 11%.
Featured image from iStock, chart from Tradingview.com
