Ethereum ETF Approval Deadline, There are several applications like VanEck’s spot Ethereum ETF, and today, May 23, is a pivotal day in the approval process since the U.S. Securities and Exchange Commission (SEC) is going to rule on the first of these applications.
It is believed that the other applications will also be approved if the U.S. Securities Commission authorizes the VanEck product. Similar to how the government approved Bitcoin items simultaneously, it may even approve all of them. In the week leading up to the decision, the price of Ethereum (ETH) jumped more than 27% on the back of investor optimism that spot Ethereum ETFs will attract institutional investors pouring billions of dollars into the market. Ethereum exchange-traded funds (ETFs) may not begin trading right once, even if they are approved.
“There are broad misconceptions that ‘approvals’ mean immediate launches of the Ethereum ETFs,” says James Seyffart of Bloomberg Intelligence. That isn’t always the case. Launches here will take days, if not weeks, and possibly months, from the time of approval.
ETF Approval Steps
Two forms—19b-4 and S-1—filed by applicants must be approved by the SEC before Ethereum ETFs can begin trading. Before going public, corporations are required by law to file a registration statement, commonly known as the S-1 form, in which they detail their financial situation, risk considerations, and business operations. On the other hand, stock exchanges and other self-regulatory organizations (SROs) use Form 19b-4 to approve rule amendments.
Asset Insight Partners principal analyst James Fabien said the 19b-4 form applies to ETF structure, mechanics, and operational criteria that affect SEC exchange trading approval. “Although the S-1 is vital for protecting investors and being transparent, it is more commonly seen as a formality for compliance purposes.”
Regardless of the information supplied in the S-1, the ETF cannot launch without an approved Form 19b-4. Form 19b-4 is the only one the SEC will settle on today; the S-1 form might take longer. The application process for the ETF’s offering and listing can move forward if both forms are greenlit.
ETH ETF Trading Timing
Additional regulatory processes mean that it could be weeks or months before an Ethereum exchange-traded fund (ETF) starts, even after SEC clearance. Ethereum exchange-traded funds (ETFs) could benefit from a longer holding period, according to crypto and ETF expert Michael Van de Poppe, CEO of MN Trading. “The approval of the Ethereum ETF is more likely to take place in 2-3 months,” he stated.
An Ethereum exchange-traded fund (ETF) has a 25% probability of approval, according to Bloomberg Intelligence analysts up until last week. To be sure, the odds were already 75% before this week. “The odds for an approval have increased, however, the likelihood of an approval within a window of 24 hours sounds weird and almost impossible to establish,” Van de Poppe told The Defiant.
Reasons Behind Higher Odds
Ethereum ETF Approval Deadline, Ethereum ETF approval probability was greater for several reasons. The fact that former president Donald Trump used crypto in his campaign is one significant factor, say observers. Lawmakers are beginning to see Bitcoin in a different light since two major crypto laws, H.J. Res. 109 and FIT21, have received backing from both parties.
The approval could be swayed by politics, according to Jake Chervinsky, Chief Legal Officer of Variant Fund. “Crypto has been winning the political battle for months.” It was suggested by Chervinsky that the “Biden camp saw how many voters Trump could win with one pro-crypto comment and decided to pivot.”
Ecosystem Lead at LightLink Daniel Enright also said political issues may boost Ethereum ETF acceptability. “There will be a lot of pressure to pass this approval if it becomes a political and election issue now.” Vincent de Poppe suggests preparing in the coming months. “The summer may see preparations for the Ethereum ETF’s approval following these delays.”He also noted, “I estimate a 70-80% chance for approval within 2-3 months, and roughly a 10-20% chance within the next few days.”
Removing Final Hurdles
In recent days, ETF applicants have started making revisions to their applications, which might delay the product’s clearance. Staking Ethereum services have been removed, which is a big step. Nasdaq changed the 19b-4 forms for BlackRock’s iShares Spot Ethereum ETF and Franklin Templeton, Fidelity, VanEck, and Invesco Galaxy ETFs on Wednesday after CBOE did the day before. These changes eliminated staking rewards, where investors stake Ether to confirm blockchain transactions and protect the network.
Analysts believe Ethereum ETFs can gain SEC approval if ETH is a securities if staking is eliminated from the filing. According to financial lawyer Scott Johnsson, it was believed that staking would be removed. Ethereum ETF Approval Deadline, The fact that the commodity grantor trust structure and disclosures have remained unchanged is the most significant signal here. The SEC is making its case for Ethereum as a security, and everything is fitting into place.
According to Fabien, who spoke with The Defiant, Ethereum could benefit from not staking. The cryptocurrency Ethereum is in serious jeopardy because exchanges like Lido and Coinbase own a sizable amount of its supply. As the SEC considers banning staking, institutional demand is likely to shift from staked to plain ETH. Fabien stated that this could “help reduce the risks associated with having a concentrated supply of staked ETH, such as vulnerabilities to consensus exploits.”
Bitget Research Chief Analyst Ryan Lee informed Defiant that ETF applicants will have two options if their applications are denied. The first option is to reapply and address the SEC’s rejection reasons. Second, Grayscale Investments sued the market regulator for restitution, which worked.
Next, Solana ETFs?
After early approvals, Enright anticipates other cryptocurrencies and Bitcoin ETFs to enter the mainstream. Pandora’s box of legitimizing crypto assets outside Bitcoin may create new crypto market leaders “said. This may include Solana, Chainlink ETFs.” and other cryptocurrencies.
But that’s not the view of Nate Geraci, president of The ETF Store. A spot Solana ETF, in his opinion, can only exist if certain conditions are met. “A spot Solana ETF won’t exist until a Chicago Mercantile Exchange-traded Solana futures product is listed or Congress puts a legitimate cryptocurrency regulatory framework in place.”
However, Adam Cochran, a partner at Cinneamhain Ventures, has stated that other cryptocurrencies may replace Solana as the next target for a spot ETF. Getting LTC and DOGE first, according to Cochran’s tweet. A lot less interest, but less clutter.