US SEC to Approve Examination Request for Spot ETH ETF to Stock Exchanges

US SEC to Approve Examination Request for Spot ETH ETF to Stock Exchanges

The US Securities and Exchange Commission (SEC) Division of Trading and Markets has notified stock exchanges that have applied for a spot Ethereum (ETH) ETF that it will approve Form 19b-4 (formal examination request) this week. This marks a significant shift in the SEC's stance, which had shown no interest in filing related to spot ETH ETFs just two weeks ago.
In this regard, the source added, "This is an unprecedented situation where the approval of a spot ETH ETF has become a political issue." Issuers who had applied for the ETF S-1 (registration statement) reportedly contacted the SEC, but the SEC's Division of Corporation Finance, which is responsible for approving S-1s, is said to have taken a somewhat different stance. For an ETF to be launched in the US, both Form 19b-4 and S-1 must be approved by the SEC, with Form 19b-4 being approved by the Division of Trading and Markets and S-1 by the Division of Corporation Finance. Another source said, "Given the lack of consensus within the SEC, the SEC's announcement of the approval of the 19b-4 for the spot ETH ETF is likely to be a largely political decision," noting that the Biden administration and the Democratic Party are responding to former US President Donald Trump's recent pro-crypto stance.
Meanwhile, the SEC did not respond to The Block's request for comment on the matter. Earlier, American financial weekly Barron's reported, citing sources familiar with the matter, that "the SEC is leaning towards approving a spot ETH ETF."