The SEC has informed exchanges it is leaning towards approving spot Ethereum ETFs, according to a Barron report. On Monday, reports came out that the SEC was changing their mind on the future of the Ethereum funds, and the agency decided to speed up the process of reviewing applicants’ documents.
Presently, the SEC permits ETFs holding Ether futures, but this approval would allow them to hold the currency itself. Yesterday, the SEC asked exchanges to update their 19B-4 filings for their Spot Ethereum ETFs. The agency looks to be speeding toward a potential approval by a crucial Thursday deadline.
Furthermore, for the Ethereum ETFs to be approved, the SEC must approve the 19b-4s (exchange rule changes) & S-1s (registration statements). Upon approval of both, all of the ETF applications will likely be approved simultaneously, allowing the funds to go live. It took a significant amount of time for the US regulator to approve Bitcoin ETFs, and the same is expected for the Ethereum ETFs.
Also Read: SEC Asks Exchanges To Update 19B-4 filings For Spot Ethereum ETFs
The 19b-4 forms are due to be approved by Thursday. Spot Ethereum ETFs could go live on the market as soon as this week if everything is approved. The SEC has yet to comment on reports that it may approve the ETFs this week.
Ethereum is up 20% at press time, trading at $3,777.51. It holds the second largest market cap among all cryptocurrencies, only second behind Bitcoin.