The SEC’s recent instructions to Ethereum ETF issuers mark a significant step in the regulatory process.
Industry anticipation is high, as Nate Geraci, co-founder of ETF Institute, predicts this week will be the Ether Exchange-Traded Funds (ETF) approval week. The United States Securities and Exchange Commission (SEC) has issued final instructions to Ether ETF applicant companies to allow them to launch the ETFs by Tuesday. This development is a significant milestone in integrating crypto-investments into the traditional financial market.
Ether ETF Trading to Start on Tuesday
On May 23, the SEC allowed issuers to propose rule changes through their 19-b forms, a crucial step in the regulatory process. The next step for asset managers is to secure approval for their initial securities registration through S-1 forms.
The asset managers have not held back on their applications. These firms submitted updated S-1 forms last week and eagerly await a response from the SEC. Aside from VanEck and Invesco Galaxy, other ETF companies have not revealed management fees and other vital details about how their funds will function.
On Monday, SEC officials provided positive feedback to prospective issuers, stating that the agency has no negative comments on the submitted S-1 forms. They further instructed that the final versions must be submitted by Wednesday and revealed that the ETFs can be listed on exchanges starting Tuesday, July 23.
Providing further information, a second official revealed that the funds will be officially approved on Monday and start trading the next day, just as they did with spot bitcoin ETF approvals in January.
According to reports, the U.S. SEC has given “preliminary approval” to at least three of the eight asset managers filing for a spot ethereum ETF that will begin trading next Tuesday.
As revealed by the anonymous SEC officials, BlackRock, VanEck, and Franklin Templeton are among the eight asset managers whose applications are most likely to be approved by the following Monday, July 22. Trading in the products is expected to begin the next day.
Following the spread of this information, ethereum (ETH) has risen. Investors have turned attention to the second-largest cryptocurrency, and they now see it in a more positive light. At press time, ETH is above the $3400 mark and has formed many bullish candles, indicating a further uptrend.