The U.S. Securities and Exchange Commission (SEC) has begun discussions with potential issuers of spot Ether exchange-traded funds (ETFs) on May 22, with some anticipating imminent approval. Reporter Eleanor Terrett noted that discussions between SEC staff and spot Ether ETF issuers on Form S-1 concluded that there is still "work to be done." Form S-1 is a registration statement filed with the SEC, containing detailed information about the company and the securities it intends to issue.
In contrast, Form 19b-4 is a regulatory document used by a self-regulatory organization (SRO) like a stock exchange to propose new rules or amend existing ones, requiring SEC approval. In a subsequent update, Terrett referenced "ETF experts" and speculated that if the SEC approves Form 19b-4 on May 23, they might work with ETH ETF issuers on their S-1 filings in the coming weeks or months.
Eric Balchunas, a senior ETF analyst at Bloomberg, predicted that the SEC would make an announcement around 4 pm on May 23, similar to past spot Bitcoin ETF announcements. He noted that the SEC has released such announcements at various times, including after 4 pm, indicating that anything is possible. This development follows the U.S. House of Representatives' approval of the FIT21 cryptocurrency bill on May 22, with 208 Republicans and 71 Democrats in favor and 136 opposed.
Joseph Lubin, CEO of ConsenSys and Ethereum co-founder, recently commented on the anticipated approval of an Ethereum ETF. Lubin mentioned that a U.S. Ether ETF "is already doing very well." He expressed confidence that 19b-4 filings from prominent companies like BlackRock would be approved, although he acknowledged that the S-1 process "could drag on for a while."
Lubin further explained that the SEC is under pressure to maintain a neutral stance, especially with the upcoming U.S. presidential election. This suggests that the regulatory body might be cautious in its approach to ensure fairness and thoroughness in its decisions regarding Ethereum ETF approvals.
