Bitrabo Editorial
This week, all eyes are on the United States Securities and Exchange Commission (SEC) regarding the anticipated Ethereum Spot Exchange-Traded Funds (ETFs). Nate Geraci, President of the ETF Store, has suggested that the SEC will soon provide a final verdict on these exchange-traded funds.
Impending Decision on Ethereum Spot ETFs
The SEC’s forthcoming ruling is awaited with bated breath as it could significantly influence Ethereum investments. This disclosure by Nate Geraci has sparked heightened expectations within the cryptocurrency and investment sector.
Geraci has underscored the crucial role of the 19b-4s (exchange rule modifications) and S-1s (registration statements) in the SEC’s evaluation process. For Ethereum spot ETFs to be introduced, both filings must receive approval from the regulatory authority.
Submission of a 19b-4s is mandatory when national securities exchanges, such as NYSE or Nasdaq, wish to introduce new products or amend rules. On the other hand, S-1s provide comprehensive information about a company’s financial status, management, and business operations, necessary for newly issued securities.
The S-1s will detail the administration, structure, and strategy of the spot ETH ETFs in mimicking Ethereum’s performance. Approval of both S-1s and 19b-4s by the SEC is vital for these products to be legally available to the public.
While Geraci is optimistic about the approval of 19b-4s, he anticipates a more cautious approach from the agency towards S-1s. Without SEC clearance of the S-1s, the funds cannot be lawfully distributed to investors, potentially prolonging the assessment and approval process.
SEC Decision or Potential Legal Action
Nate Geraci, a prominent figure in the crypto space, expresses skepticism about the prospects of SEC approval for the ETH spot ETFs. He has previously highlighted the SEC’s minimal engagement as a hindrance to the fund’s clearance.
Geraci questions whether the SEC has learned from past experiences, notably with spot Bitcoin ETFs, suggesting that approval or legal action from the Commission are likely outcomes for Ethereum spot ETFs.
Currently, the likelihood of the product receiving approval has significantly decreased heading towards the May deadline, as indicated by data from Polymarket, showing approval odds at a mere 11%.