The U.S. Securities and Exchange Commission (SEC) has sent a jolt through the cryptocurrency industry by requesting updates to applications from Nasdaq and CBOE to list spot Ethereum exchange-traded funds (ETFs), according to Reuters. This unexpected move suggests a potential green light for these ETFs, which has sent the price of Ethereum soaring.
Key Takeaways:
The SEC's request for revisions to the ETF filings is seen as a positive sign for approval.
Ethereum (ETH) price jumped by as much as 22% in the past day.
The SEC has until the end of the week to decide on CBOE's applications for ETFs from VanEck and ARK Investments/21Shares.
Even with SEC approval, issuers need further registration statement clearance before trading can begin.
Industry insiders were previously expecting rejection due to a lack of SEC engagement on the filings.
Surprise Move by the SEC
The SEC's actions mark a significant departure from industry expectations. Previously, a lack of communication from the regulator regarding the filing details led many to anticipate a rejection.
Quick Updates Requested
However, on Monday, the SEC surprised everyone by reaching out to Nasdaq and CBOE, requesting swift updates and changes to their applications. These applications represent the first step in a two-part approval process, seeking SEC approval for a rule change that would allow the listing of new products.
Approval Not Guaranteed
Even if the SEC approves the revised filings, the issuers will still require separate approval for their ETF registration statements before trading can commence.
Price Surge for Ethereum
The news of the SEC's request has undeniably triggered a surge in the price of Ethereum. The value briefly surpassed the $3,800 mark within the last 24 hours.
Background on Ethereum ETFs
The first applications for spot Ethereum ETFs emerged after the SEC approved ETFs tied to Ethereum futures back in October. However, many market participants braced themselves for rejection of the spot ETF applications due to previous discouraging and one-sided meetings with the SEC.
Disclaimer: This information is for educational purposes only and should not be considered financial advice. Always conduct your research before making any investment decisions.
Source: Reuters
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