SEC may approve Spot Ethereum ETF’s 19b-4 first, delaying S-1

Two sides of the Spot Ethereum ETF have emerged now, and it is crucial for the US Securities & Exchange Commission to consider both for approval. Only then will the status of the said ETF become clear. The first side pertains to 19b-4, the approval of which enables exchange platforms to list the ETF and allow investors to invest. Platforms include the NYSE and Nasdaq.

The second side pertains to S-1. It is an initial registration form that puts detailed information about the ETF on the table. This includes critical insights into the fund’s structure, replicated performance plans, and management.

The public and investors can only list the Spot Ether ETF on exchange platforms after the SEC has approved both forms. According to market talk, there is a high chance that the Commission will approve 19b-4 first and then take some time to give the green light to the other part of the ETF.

A tentative timeline for 19b-4 has not been discussed, but it is safe to assume that the agency could take 45–240 days to approve the form. The lack of engagement between applicants and the Commission is the reason for the slow pace. One reason why it is imperative for both forms to go through is because it would uptick the chances for ETH to trade higher. Also, it would lead to an increased adoption of the token.

Nate Geraci, President of The ETF Store, stated that the ETF launch primarily requires the SEC to approve 19b-4. Nate added that because of the lack of engagement, the Commission could slow down the approval of S-1s.

The current situation has one thing certain: the SEC will take time to review and approve applications under a more cautious approach, given the multiple layers of complexities and risks involved in crypto products. After a lot of work and a lengthy time frame, Spot Bitcoin ETF received approval. Ether ETF is only following that trend.

ETH is above the milestone of $3,000, testing the resistance of $3,100 at $3,111.05, down by 0.17% in the last 24 hours at the time of writing this article. It has exchanged hands at around $4,000. Approval for both applications could re-trigger that uptick once again, possibly by the end of this year. There is a 25.92% upward trend in 24-hour trading volume and a 0.21% downtrend in market cap.

Ether is aiming to get back for a rise to $4,000. The approval of 19b-4 and S-1 could fuel it. That said, BTC is listed at more than $67,000 right now, finally out of its consolidation phase, which was within the range of $61,000 and $63,000 for several days.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

Related Articles

Back to top button
Bitcoin (BTC) $ 64,279.22
Ethereum (ETH) $ 3,495.10
Tether (USDT) $ 0.99984
BNB (BNB) $ 588.33
Solana (SOL) $ 134.25
XRP (XRP) $ 0.487314
Dogecoin (DOGE) $ 0.124157
Cardano (ADA) $ 0.386648