SEC Requests Updates to Nasdaq and CBOE Ethereum ETF Filings
According to Reuters, the U.S. Securities and Exchange Commission (SEC) has requested that Nasdaq and CBOE amend their applications to list spot Ethereum exchange-traded funds (ETFs).
Key points:
- The SEC’s request for updates to Nasdaq and CBOE filings signals potential approval of spot Ethereum ETFs.
- ETH price surged by as much as 22% in the last 24 hours.
- SEC must decide on CBOE’s applications to list VanEck and ARK Investments/21Shares ETH ETFs by the end of the week.
- Issuers still need SEC approval for ETF registration statements before trading can begin.
- Industry executives had expected rejection due to a lack of engagement from the SEC on filing details.
The SEC’s surprise move comes as a departure from the industry’s expectations, as the regulator had not engaged with exchanges and issuers on the filing details. This had led to many anticipating a thumbs-down.
Also read: Kraken Mulls Removal Of Tether (USDT) Amidst New EU Regulations
SEC reached out to make quick updates to Ethereum ETF filings
However, on Monday, SEC officials reached out to Nasdaq and CBOE, requesting quick updates and changes to their filings.
The exchange applications, which seek SEC approval for a rule change required to list new products, are the first step in a two-step approval process.
Even if the SEC green-lights the filings, issuers will still need the agency to approve their ETF registration statements before the products can begin trading.
The news of the SEC’s request has undoubtedly triggered a price surge for ETH. ETH also breached the $3,800 level for a brief period of time in the last 24 hours.
The first issuers filed for spot Ethereum ETFs after the SEC approved ETFs tied to Ethereum futures in October. However, market participants had expected the SEC to reject the spot ETH ETF applications, citing discouraging and one-sided meetings with the regulator.
