Bloomberg’s team of analysts have suggested that the U.S. Securities and Exchange Commission (SEC) could initiate the approval process for spot ethereum exchange-traded funds (ETFs) as early as tomorrow. They have highlighted that the SEC has requested revised Form 19b-4s from issuers to be submitted by Tuesday morning, signaling a probable approval by Wednesday. This submission is a crucial step in the ETF approval procedure.
In the midst of widespread speculation surrounding the potential approval of spot ethereum ETFs by the SEC, Bloomberg’s ETF analysts have shared their predictions on the social media platform X. Eric Balchunas, a senior analyst, commented on the situation, stating, “The Eethness Stakes is pretty good. Nice look at all the entrants dealing with this fire drill.” He further mentioned that the SEC has requested revised Form 19b-4s to be submitted by 10 a.m. on Tuesday, based on feedback received on Monday, with a likely approval expected by Wednesday. Form 19b-4 is utilized to inform the SEC about a proposed rule change by a self-regulatory organization (SRO).
Balchunas’ statement was in response to a list of spot ethereum ETF applications shared on X by another Bloomberg ETF analyst, James Seyffart. This list includes various ETFs such as Vaneck Ethereum ETF, ARK 21shares Ethereum ETF, Hashdex Nasdaq Ethereum ETF, Grayscale Ethereum Trust, Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund, Ishares Ethereum Trust, Franklin Ethereum ETH, and Bitwise Ethereum ETF. Seyffart referred to this lineup as the “ETHness Stakes.”
The SEC has upcoming deadlines on May 23 and May 24 to make decisions on spot ethereum ETF applications by Vaneck and Ark Invest respectively. Seyffart and Balchunas have raised their expectations of spot ethereum ETF approval to 75% following reports that the SEC has requested issuers to resubmit Form 19-bs on an expedited basis. Seyffart clarified that he and Balchunas increased the odds to 75% “for the 19b-4 May 23rd deadline (Vaneck’s deadline).” The analyst added that the SEC still needs to approve Form S-1s (registration statements) for spot ether ETFs. He expressed his opinion, saying, “We also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus a live ETH ETF.”
Until recently, the general expectation was that the SEC would reject spot ethereum ETF applications. SEC Chair Gary Gensler has refrained from directly addressing whether ETH is considered a security. A recent court document also revealed that the securities watchdog has launched a formal investigation into ether as a potential security.
Lawyer Jake Chervinsky shared his perspective on X, stating, “If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who’s close to this process. That doesn’t mean it won’t happen. It means approval could signal a major shift in U.S. crypto policy after the SAB 121 vote, perhaps more important than the ETF itself.” Chervinsky was referring to the SEC’s controversial Staff Accounting Bulletin No. 121 (SAB 121), which imposes regulatory burdens on digital asset custodians. Congress has voted in favor of overturning SAB 121, but President Joe Biden has threatened to veto the decision.
Seyffart agreed with Chervinsky, stating, “This is the correct take. I was literally in DC last week for [Perianne Boring’s] Blockchain Summit, and almost every single person I spoke to said that it [spot ether ETF] was going to be denied. Only one person thought it would be approved out of like 30+.”
What are your thoughts on when the SEC will approve spot ethereum ETF applications? Let us know in the comments section below.
