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SEC on the Clock: Will Ethereum ETFs Finally Get Approved?

Published 20/05/2024, 07:22
© Reuters.  SEC on the Clock: Will Ethereum ETFs Finally Get Approved?

Coin Edition -

  • SEC deadline for Ethereum ETFs looms this week.
  • Approval could boost Ethereum adoption, trading.
  • Delay raises concerns about crypto regulation.

The SEC faces a crucial deadline this week to decide on the approval of exchange-traded funds (ETFs) based on Ethereum, according to a social media post by Nate Geraci, president of The ETF Store.

Geraci, an industry expert on ETFs, highlighted the SEC’s two-pronged review process in his online post. The process requires approval of both the 19b-4 filings, which address exchange rule changes, and the S-1 registration statements. Both filings are essential for bringing Ethereum ETFs to market.

Geraci expressed concern that the SEC might delay approval of the S-1 filings even if the 19b-4 filings are greenlit. This speculation stems from the SEC’s recent lack of engagement on the issue, and the inherent complexities of cryptocurrency products. Such delays would allow listing of the ETFs, but they could not be traded until the S-1 filings receive approval.

The SEC’s decision on Ethereum ETFs is keenly awaited. Approval could facilitate broader mainstream adoption of Ethereum, offering a more regulated and secure investment option for cryptocurrency investors.

Conversely, delays or denials could underscore continuing regulatory anxieties regarding the stability and security of cryptocurrency investments. A key question remains: Is Ethereum a security or a commodity? While SEC Chair Gary Gensler has declined to comment on ETH’s classification, he has suggested in public appearances that it might be considered a security.

The SEC’s decision will be a bellwether for the future of cryptocurrency regulation. Approval of Ethereum ETFs could signal a shift towards a more accommodating regulatory environment, potentially boosting investor confidence and propelling Ethereum further into the mainstream. However, a rejection or delay could cast a shadow over the industry, raising questions about the regulatory viability of other cryptocurrency-based investment vehicles.

The post SEC on the Clock: Will Ethereum ETFs Finally Get Approved? appeared first on Coin Edition.

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