As quickly as the U.S. SEC requested issuers of spot Ethereum ETF to submit their 19b-4 filings, the market was abuzz with the information that the chance of approval had elevated significantly. So far, the uncertainty round Ethereum’s ‘security’ standing has proved to be a serious roadblock for the ETF approval. However, with the SEC reaching out to issuers for 19b-4 filings, the query arises whether or not the regulator is keen to bypass the earlier issues.
SEC May Differentiate Between ETH and Staked ETH
Galaxy researcher Alex Thorn has weighed in on the hypothesis surrounding the SEC’s stance on Ethereum ETFs. Thorn means that if the SEC is contemplating a reversal, they could distinguish between Ethereum (ETH) itself and staked Ethereum (stETH) or “staking as a service ETH” as securities.
Thorn notes that this method might align with the SEC’s ongoing court docket instances and investigations, doubtlessly permitting the approval of Ethereum ETFs whereas sustaining the company’s beforehand acknowledged opinions. This nuanced differentiation might pave the manner for regulatory acceptance of Ethereum ETFs.
if the hypothesis a few 180 from SEC on the ethereum ETFs is true, i might guess they fight to thread a needle between “ETH” NOT being a safety and “staked ETH” (or much more flimsily, “staking as a service ETH”) as BEING a safety.
that will be considerably congruent with…
— Alex Thorn (@intangiblecoins) May 21, 2024
Crypto investor Anthony Pompliano has acknowledged that the approval of an Ethereum ETF would mark a pivotal second for the cryptocurrency trade. “If they approve the Ethereum ETF, they are approving the entire industry,” Pompliano remarked, suggesting that such a call would break the last barrier to widespread regulatory acceptance.
However, questioning his euphoria surrounding the approval of spot Ether ETF, crypto fanatic @AdamAsunits writes: “I can’t imagine. ETH foundation so blatantly bucked at securities laws. Literally free pass for anyone to sell unregistered investment contracts from that point forward”.
ETH Price Action
Although the Ethereum worth has rallied by over 20% in the final 24 hours, the volatility will proceed till there’s an official assertion from the SEC.
QCP Capital noted that if the SEC approves the spot Ether ETF, the ETH worth can simply rally previous $4,000 and even additional to $5,000. However, in the case of a denial, it might slip to $3,000.
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