Nasdaq, CBOE, and NYSE asked to update applications by SEC
Price of ether jumped 18% in anticipation of approval before retreating slightly
SEC must decide on registration filings by end of week, no set time frame for decision on exchange applications
SEC poised to approve spot ether ETFs according to multiple sources
VanEck and ARK Investments/21Shares have filed for listing spot ether ETFs
In a significant development for the cryptocurrency industry, the US Securities and Exchange Commission (SEC) appears to be poised to approve spot ether exchange-traded funds (ETFs), according to multiple sources familiar with the process. The SEC asked Nasdaq, CBOE and NYSE to fine-tune their applications for listing spot ether ETFs, signalling a potential green light for filings from VanEck and ARK Investments/21Shares. While the exchange applications are just the first step in a two-step approval process, a thumbs-up from the SEC would mark a major win for the cryptocurrency industry. The price of ether jumped as much as 18% on Monday in anticipation of approval, before retreating slightly to trade around $3,747 on Tuesday afternoon. The SEC must decide whether to approve applications filed by CBOE to list ether ETFs provided by VanEck and ARK Investments/21Shares by the end of this week. The SEC had not engaged with exchanges and issuers on the filing details, leading industry executives to expect it would reject them. However, in a surprise move, SEC officials on Monday asked Nasdaq, CBOE and NYSE to quickly make updates and changes to the filings, requests which usually precede approval. The exchange applications seek SEC approval for a rule change required to list new products, but the issuers still need the agency to approve the ETF registration statements before they can start trading. Unlike the exchange filings, there is no set time frame in which the SEC has to decide on the registration filings, meaning it could take several months for ether ETFs to begin trading. The first issuers filed for spot ether products after the SEC approved ETFs tied to ether futures in October. However, market participants had expected the SEC to reject spot ether ETF applications, citing concerns over market manipulation. The approval of spot ether ETFs would mark a major milestone for the cryptocurrency industry and could attract significant investment from hedge funds, wealth advisers and retail investors who have so far been wary of investing in cryptocurrencies due to regulatory uncertainty. In other developments, memecoins based on the Ethereum blockchain surged as market participants speculated on potential ether ETF approvals. The price of PEPE rose 16% in the 24 hours to Tuesday, while LADYS surged about 30% and DOGE increased roughly 6% in the same period. Ethereum's price also rose by around 5%, trading at $3,776.87 at press time. The approval of ether ETFs would likely further boost the price of ether and other cryptocurrencies, as investors seek to gain exposure to the growing cryptocurrency market.
Cboe BZX submitted revised forms for five Ethereum ETF applications
Approval of Form 19b-4s is required before spot Ethereum ETFs can be implemented
Rumors of potential launch of Ethereum ETFs have been validated by the filings
Accuracy
SEC requested changes to the forms earlier in the week
Approval of Form 19b-4s is required before spot Ethereum ETFs can be implemented, but S-1 registration statements also need approval before trading can commence
Ethereum-based memecoins have surged amid potential spot ether ETF approvals in the US.
Pepe’s price has risen 16% in the past 24 hours.
LADYS surged about 30% and DOGE increased roughly 6% in the same period.
Accuracy
ETH is up about 4.6% to $3,746.93.
SEC may be poised to approve the filings.
Deception
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None Found At Time Of
Publication
Fallacies
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The article contains an appeal to authority when it mentions the potential impact of spot ether ETF approvals on memecoins. However, no fallacies were found that significantly impacted the overall quality of the article.
Markets react to potential spot ether ETF approvals
