SEC May Approve First Spot ETH ETF This Week, But Approval Process May Be Sluggish
CryptoNewsTerminal Staff20 May, 2024
SEC May Approve First Spot ETH ETF This Week, But Approval Process May Be Sluggish
The US Securities and Exchange Commission (SEC) is set to decide on the approval of the first spot Ethereum (ETH) exchange-traded fund (ETF) this week. If approved, it would be a significant milestone for the cryptocurrency industry. However, experts believe that even if the SEC approves the ETF, the subsequent procedures may take longer than expected. Nate Geraci, CEO of ETF Store, said that the SEC must approve both the 19b-4 form (a formal request for review) and the S-1 registration statement before an ETF can be launched. The deadline for a 19b-4 approval decision is May 23 for the VanEck Ethereum ETF and May 24 for the Ark 21Shares Ethereum ETF. Geraci said that even if the SEC approves the 19b-4 forms, the S-1 registration statement may be processed more slowly if participation is still deemed insufficient. This means that the launch of the first spot ETH ETF could be delayed, even if the SEC approves the initial 19b-4 forms this week. Investors should be aware of this potential delay and should not expect the ETF to launch immediately if the SEC approves the 19b-4 forms.
