Activity in the cryptocurrency market continues this week. After last week's US data, the SEC's Ethereum ETF decision will be followed this week.
While it is generally believed that the SEC will reject spot ETH ETF applications, the SEC will first approve or reject VanEck's application on Wednesday, May 23. On Thursday, May 24, Ark 21Shares will announce its decision regarding the spot ETH ETF application.
While the SEC's decision on the VanEck application on Wednesday will be decisive for the fate of other spot Ethereum ETF applications, ETF Store President Nate Geraci made a new post on his X account.
Stating that the SEC must approve both 19b-4s (exchange rule changes) and S-1s (registration statements) in order for Spot ETH ETFs to be launched, Nate Geraci said that the SEC will approve 19b-4s in the first stage and S-1. -1 said he could take his approvals slowly.
Geraci also stated that this possibility is technically possible, considering the lack of communication between the SEC and ETH ETF applicants.
Market analysts other than Geraci also speculate that the SEC may use such delaying tactics to further evaluate market conditions or the structures of ETH ETFs before rejecting applications outright.
What are 19b-4 and S-1 Applications?
19b-4 is the filing that a national securities exchange, such as the NYSE or Nasdaq, files with the SEC when it wants to change the rules or introduce new products such as spot ETH ETFs.
The S-1 is the initial registration form required for new securities offerings that provides the SEC and potential investors with detailed information about the company's business operations and products.
At this point, ETFs cannot legally be sold to investors until S-1 applications are approved.
SEC decision deadline this week on spot eth ETFs…
SEC must approve both the 19b-4s (exchange rule changes) & S-1s (registration statements) for ETFs to launch.
Technically possible for SEC to approve 19b-4s & then slow play S-1s (esp given reported lack of engagement here).— Nate Geraci (@NateGeraci) May 19, 2024
*This is not investment advice.
