The U.S. Securities and Exchange Commission (SEC) is nearing its final decision on a series of spot Ethereum exchange-traded fund (ETF) applications. The outcome, expected this week, could significantly influence Ethereum’s market dynamics.
Key Deadlines for Ethereum ETFs
The SEC’s decision on VanEck’s spot Ethereum ETF application is due by Wednesday, May 23. This ruling will be closely followed by the deadline for the Ark 21Shares spot ETH ETF application on Thursday, May 24. These pivotal dates are anticipated to set the precedent for other issuers awaiting verdicts from the US regulator, including Hashdex, Grayscale, Invesco Galaxy, BlackRock, and Fidelity.
SEC Approval Uncertainty
On May 20, Nate Geraci, President of ETF Store, highlighted the complex approval process involving the 19b-4 filings and S-1 registration statements necessary for ETFs to launch. The 19b-4 form is submitted by exchanges like NYSE or Nasdaq when proposing rule changes or new products, such as spot ETH ETFs. The S-1 form provides detailed information about the issuing company’s business and products, required for new securities offered to the public.
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
Industry observers, including a commentator known as “Gronky,” noted that the SEC might employ delay tactics to further scrutinize market conditions or ETF structures without outright denying the applications. The decision lies in the hands of five SEC Commissioners, including crypto-friendly Hester Pierce and Mark Uyeda, as well as Gary Gensler, Caroline Crenshaw, and Jaime Lizárraga, whose votes could sway the outcome.
Also Read: Gary Gensler Stands High Chances Of Losing His Job In 2024: John Reed Speaks
Ethereum Price Predictions
Should the SEC approve the VanEck fund, Ethereum (ETH) prices are expected to surge in the short term. However, the general consensus among analysts is that the SEC may reject the applications. Despite this, some analysts believe that the Ethereum market bottom has already been reached, suggesting that eventual approval of spot ETFs is likely, even if not this week.
$ETH monster run incoming?
Ethereum ETF decision on the 23rd May.
I expect it to get rejected ✖️
BUT I think the $ETH bottom is already in
Ethereum will get an ETF and the market knows it.We are going to see a crazy run in Ethereum in the coming months as $BTC halving is… pic.twitter.com/gzzq3Xbr68
— Dippy.eth (@dippy_eth) May 19, 2024
Analyst “Mister Crypto” posited that the market has already factored in a bearish rejection scenario, a sentiment echoed by other crypto analysts. Nevertheless, a surprise approval could lead to an unexpected price rally, potentially pushing ETH prices from their current level of just under $3,100 to as high as $3,500 or beyond.
