• U.S. SEC asks ETH ETF issuers to revise and resubmit their Form 19b-4 filings.

  • The request for updated documents indicates potential approval for ETH spot ETFs.

  • The sentiment has been reflected in ETH’s value, soaring by 20% to $3,700.

The SEC has taken a step that could signal a shift in its stance on cryptocurrency exchange-traded funds (ETFs).

The agency’s Trading and Markets Division instructed asset managers on Monday to revise and resubmit their Form 19b-4 filings for Ethereum spot ETFs, according to a report from The Wall Street Journal. The report, citing anonymous sources, noted that the SEC emphasized the need for expedited revisions.

This development follows the recent approval of Bitcoin spot ETFs, where the SEC’s greenlighting of the 19b-4 forms preceded the effectiveness of issuers’ registration statements, allowing trading to commence.

Based on these developments, Bloomberg ETF analysts James Seyffart and Eric Balchunas have significantly revised their outlook on the likelihood of the SEC approving an Ethereum spot ETF. In particular, they have raised the probability from 25% to an encouraging 75%. 

Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om

— Eric Balchunas (@EricBalchunas) May 20, 2024

This shift in expert sentiment suggests not only the potential approval of Ethereum spot ETFs, but also a broader potential for the SEC to be more receptive to crypto-based ETFs beyond Bitcoin. This could pave the way for greater mainstream adoption of digital assets.

The SEC’s request for updated documents is seen as a positive indicator for Ethereum spot ETFs, a sentiment that has already been reflected in ETH’s market value. In particular, ETH has experienced a significant surge of over 20% in the last 24 hours, reclaiming the $3,700 price level.

The SEC is expected to decide on an application for at least one Ethereum spot ETF by May 23. If approved, these ETFs would provide traditional investors with a new, regulated way to gain exposure to Ethereum’s native cryptocurrency.

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