Media: SEC begins talks with issuers of spot Ethereum-ETFs

-- Media outlets said that the SEC has started S-1 negotiations as a matter of urgency.

-- This could indicate a high likelihood of approval for spot Ethereum-ETFs, the media noted.

-- The SEC has previously asked the Nasdaq and Cboe exchanges to file 19b-4 amendments.

The Commission must approve both formularies to launch the products.

The U.S. Securities and Exchange Commission (SEC) has begun discussions with companies that have filed applications to register spot Ethereum-ETFs. This is reported by The Block, citing its sources.

In a comment to the publication, an employee of one of the applicant companies noted that the Commission's change of course was quite abrupt:

He clarified that the discussion already relates specifically to Forms S-1. As a reminder, before launching a new class of exchange-traded funds, the SEC must first approve a consolidated 19b-4 (rule change) filing. After that, the regulator will review the S-1 forms.

As the publication noted, the Commission often sends comments after each new round of review or approval of securities. According to The Block's interlocutor, most ETF issuers are cautiously optimistic.

As a reminder, the SEC is scheduled to announce a decision on VanEck's 19b-4 filing on May 23, 2024. In the case of spot bitcoin ETFs, the regulator has approved, along with one such form, the others.

Against this background, the rate of the underlying asset jumped significantly:

Other factors also point to the high probability of launching spot Ethereum-ETFs. In particular, BlackRock filed an amended Form 19b-4, removing steaking from it. This may indicate a dialog with the regulator.