The final deadline for the first ethereum ETF is Wednesday, May 23. This is when the SEC will approve or deny VanEck's application.
The application deadline for the Ark 21Shares spot eth ETF is the next day, Thursday, May 24, but what happens on Wednesday will set the tone for the rest of the issuers.
Other issuers awaiting a decision from the US regulator are Hashdex, Grayscale, Invesco Galaxy, BlackRock and Fidelity.
Approval odds don't look good
On May 20, ETF Store President Nate Geraci noted that the SEC must approve both 19b-4s (exchange rule changes) and S-1s (registration statements) for ETF launches.
He added that it was “technically possible” for the regulator to approve the 19b-4s and then “slow down” the S-1s, especially given the lack of commitment to issuers.
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Deadline for SEC decision this week on spot eth ETFs…
The SEC must approve both 19b-4s (exchange rule changes) and S-1s (registration statements) for ETF launches.
It is technically possible that the SEC approves the 19b-4s and then delays the S-1s (especially given the lack of commitment reported here).
– Nate Geraci (@NateGeraci) twitter.com/NateGeraci/status/1792330334169903568?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>May 19, 2024
A 19b-4 is the filing that a national stock exchange, such as the NYSE or Nasdaq, sends to the SEC when it wants to change rules or introduce new products, such as eth spot ETFs.
The S-1 is the initial registration form required for new securities offered to the public and provides the agency and potential investors with detailed information about the company's business operations and products.
The SEC's delay tactics can be used to “further evaluate market conditions or the specific structures of these ETFs without outright denying applications.” x.com/QeYcc/status/1792333564454846509″ target=”_blank” rel=”noopener” data-wpel-link=”external”>explained Industry watcher “Gronky” on x.
Only five SEC commissioners will vote Wednesday on whether to approve or reject VanEck's ETF. Gary Gensler, who voted to approve spot bitcoin ETFs in January, is among them.
The other four are commissioners Hester Pierce and Mark Uyeda, supporters of cryptocurrencies, and anti-cryptocurrencies Caroline Crenshaw and Jaime Lizárraga, so it could depend again on Gensler's vote.
eth Price Outlook
If the SEC approves the VanEck fund on Wednesday, eth prices are likely to rise in the near term. However, the general consensus is that the SEC will reject them.
One analyst said ethereum had already bottomed and eventually spot ETFs will be approved even if they are rejected this week.
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twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$eth Is the monster coming?
ethereum ETF decision on May 23.
I hope they reject it
BUT I think he twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$eth the bottom is already in
ethereum will get an ETF and the market knows it.
We are going to see a mad rush on ethereum in the coming months as twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$btc Halving is… pic.twitter.com/gzzq3Xbr68
— Dippy.eth (@dippy_eth) twitter.com/dippy_eth/status/1792300699872567605?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>May 19, 2024
Fellow analyst “Mister crypto” x.com/misterrcrypto/status/1792223941634691283″ target=”_blank” rel=”noopener” data-wpel-link=”external”>saying that the bearish rejection scenario was already discounted, a feeling x.com/MatthewHyland_/status/1791491477559779474″ target=”_blank” rel=”noopener” data-wpel-link=”external”>echoed by other cryptocurrency traders and analysts.
However, a surprise approval could catch people off guard. eth prices are down slightly now to just under $3,100. SEC approval could result in a quick bullish move towards the $3,500 resistance and potentially beyond.
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