The long-awaited ethereum spot exchange-traded funds (ETFs) will reach an inflection point this week, as announced by Nate Geraci, president of the ETF store. x.com/NateGeraci/status/1792330334169903568″ target=”_blank” rel=”noopener nofollow”>revealed The US Securities and Exchange Commission (SEC) is expected to issue a final decision on exchange-traded funds within the week.
ethereum Spot ETF Decision Looms
Since the SEC ruling may have a significant impact on the direction of ethereum investment, Nate GeraciThe revelation has raised expectations in the cryptocurrency and investment landscape.
Geraci emphasized 19b-4s (changes in exchange rules) and S-1s (registration statements) as the two main components of the SEC review procedure. According to the expert, before the ethereum In order to launch spot ETFs, the regulatory watchdog must accept both submissions.
When a national stock exchange, like the New York Stock Exchange or Nasdaq, wants to launch new products or change rules, it sends a filing to the SEC called 19b-4s (Exchange Rule Changes). For eth spot ETFs, exchanges must obtain SEC approval under 19b-4 before listing the products and integrating them into their trading platforms.
Meanwhile, S-1s, or registration statements, are the first registration forms required for securities newly sold to the public. They provide the agency and potential investors with complete details about the company's financial situation, management and business operations.
In the case of detect eth ETF, this presentation will cover the fund's management, structure and strategy to emulate the performance of ethereum. Therefore, for products to be legally offered to the general public, S-1 and 19b-4 must be approved by the SEC, given the importance of both filings.
While Geraci is confident that the Commission could approve the 19b-4s, he believes that the S-1s could see slow play by the agency, and without the authorization of the S-1s, the funds cannot legally be allowed to are sold to investors.
Given the lack of commitment, this could mean a prolonged period of evaluation and approval of these documents by the agency. Since then, the SEC's lack of engagement has negatively impacted the funds, raising questions and doubts about their approval.
SEC Approval or Demand
It is worth noting that Nate Geraci is one of the leading figures in the crypto industry and is pessimistic about the approval of eth spot ETFs by the SEC. Geraci previously x.com/NateGeraci/status/1781868343713988721″ target=”_blank” rel=”noopener nofollow”>implied to the agency's disturbing silence and lower level of commitment as a possible setback for the fund's approval in May.
While this makes logical sense, Geraci wonders if the SEC learned a lesson from the clown show when it comes to detect bitcoin ETF. As a result, he has highlighted an approval or legal action by the Commission as two potential outcomes for eth spot ETFs.
Currently, the chances of product acceptance have decreased substantially ahead of the May deadline. ethereum-etf-approved-by-may-31?tid=1716196367763″ target=”_blank” rel=”noopener nofollow”>Data from the Polymarket prediction market shows that the approval odds are now 11%.
Featured image from iStock, chart from Tradingview.com
