- The SEC has approved a key filing for an Ethereum ETF, marking a significant step towards approval
- The commission has approved 19b-4 forms by exchanges wishing to list an Ethereum ETF
- Only the final S-1 filing needs approval, which could take up to 90 days
In a stunning turn of events, an Ethereum ETF looks to be only weeks away after the US Securities and Exchange Commission (SEC) approved a key filing that represents the penultimate step towards approving them. Yesterday the commission, which has steadfastly stated that all cryptocurrencies bar Bitcoin are securities, approved 19b-4 forms tied to the ETFs by the exchanges wishing to list an Ethereum ETF, which means just the final filing, called an S-1, needs to be filed and approved, which could take up to 90 days.
SEC Working on “Accelerated Basis”
It was revealed earlier this week that the SEC had asked would-be Ethereum ETF-hosting exchanges to update their 19b-4 filings on an “accelerated basis” for potential spot Ethereum ETFs, leading to a flurry of comment on the matter. As ETF expert James Seyffart noted yesterday on X, these filings were rapidly approved, far quicker than anticipated:
BOOM!! APPROVED! There it is. The SEC just approved spot #Ethereum ETFs. What a turn of events. It’s really happening.
h/t @PhoenixTrades_ pic.twitter.com/KQ39mDyCbT
— James Seyffart (@JSeyff) May 23, 2024
Seyffart added that “This does not mean they [Ethereum ETFs] will begin trading tomorrow,” noting that the hosts’ S-1 documents also have to be approved, “which is going to take time.” Seyffart put this timeframe at “a couple [of] weeks” but warned that it could take longer, adding that the process typically “up to 5 months in some examples,” but he believed that the process would “be at least somewhat accelerated.”
For reference, Seyffart added, Bitcoin ETFs took at least 90 days.
Grayscale, BlackRock, and Others Celebrate
The rush for the SEC to push through an Ethereum ETF has caught many off guard, with the sentiment being far less optimistic than with the Bitcoin ETF process. There has been far less outward pressure over an Ethereum ETF, and with the SEC in the middle of litigation against some of the biggest exchanges in the world over whether Ethereum represents a security, the juxtaposition is striking.
It’s not clear how these will resolve themselves, but, for the moment at least, the likes of Grayscale and BlackRock are celebrating another victory.
