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US SEC begins approval process of Ethereum ETF, discussions currently ongoing

United States SEC Chief Gary Gensler

The United States Securities and Exchange Commission (SEC) has started the approval process of the much-anticipated Ethereum exchange-traded funds (ETFs) as discussions between the potential issuers of Ethereum ETF and the United States regulatory body are currently ongoing.

The discussions which started yesterday have led crypto enthusiasts to anticipate an imminent approval.

According to CoinTelegraph, Journalist Eleanor Terrett noted that discussions between SEC staff and Ether ETF issuers about the S-1 forms concluded with the understanding that there was still some work to do.

S-1 forms are registration statements that companies have to file with the SEC that include detailed information about the company and the securities they intend to offer.

Whereas 19b-4 forms are regulatory filings issued to the SEC for approval, used by self-regulatory organizations like stock exchanges or trading platforms like crypto exchanges to propose new rules or change existing ones.

Terret gave her own explanation of the ongoing events while also quoting ETF experts’ opinions on the matter.

Assuming that the SEC approves the 19b-4 forms on May 23, Terrett speculated that the SEC might work with Ether ETF issuers “on S-1’s over the next few weeks/months.”

Other Analysts and crypto experts gave their own assessment of the situation speculating when the US SEC is likely to give a verdict on the Ethereum ETF approval.

Eric Balchunas, a Senior ETF Analyst at Bloomberg, expects the SEC to issue an announcement on May 23, that is today. It mirrors the same time the SEC approved Bitcoin ETF.

“My best guess is we hear from the SEC around 4pm tomorrow. For spot btc they dropped it at 3:45pm, some others in past were slightly after 4pm. Anything poss tho. Eric said.

This ongoing development follows the approval of a crypto bill in the US House of Representatives which passed on May 22 with 208 Republicans and 71 Democrats in favor to 136 against.

Consensys CEO Joseph Lubin recently weighed in on the discussion giving his own assessment in anticipation of the potential looming Ether ETF approvals.

He explained to CoinTelegraph that the Ethereum ETFs in the United States were as good as done in his own perspective.

According to Lubin, the 19b-4 applications filed by high-profile firms like BlackRock would be approved, but the process behind the S-1 files could delay the approval process dragging on for a while.

He also explained that the US SEC under Gary Gensler is under a lot of pressure to maintain a neutral stance on the cryptocurrency industry as the US presidential elections draw close.

What to Know 

  • The spot Bitcoin ETF was approved by the US SEC early January and ever since then various global financial firms launched their individual Bitcoin exchange traded funds with BlackRock’s IBIT leading the pack. This development attracted a lot of money into the crypto industry and helped boost its legitimacy.
  • Analyst are predicting that an Ethereum ETF could push the price of Ethereum to $10,000 giving the cash inflow and credibility the Ethereum project will receive following its ETF approval.

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