[NEWS] Rapid developments in spot Ethereum ETF - SEC approval expected soon

The SEC (Securities and Exchange Commission) is more likely to approve a spot Ethereum (ETH) ETF, according to analysts at Bloomberg Intelligence.

The situation has developed rapidly ahead of the final approval deadline for an Ethereum spot ETF on the 23rd (US time).

On the 20th, James Seyffart and Eric Balchunas updated their predictions on the SEC's decision on a spot Ethereum ETF on X (formerly Twitter). After "listening to chatter" about the SEC's internal discussions, they said the probability of a spot Ethereum ETF being approved has increased from 25% to 75%.

Balchunas said, "The SEC may make a 180-degree turn this week on its previously expected refusal to approve an Ethereum spot ETF."

The new prediction is based on a variety of indications, including statements from SEC Chairman Gary Gensler and internal reports suggesting that the SEC may be moving toward approval due to political pressure from Democrats to change the direction of cryptocurrency policy.

Seifert echoed this sentiment, saying the issue is "increasingly political." He added that if the source is correct, there will be a surge in related filings in the coming days. "If this turns out to be true, my replies will not be the end of this story from the Ethereum people," he said, emphasizing the impact on the cryptocurrency community.

The first SEC decision on the final approval of a spot Ethereum ETF is approaching on the 23rd of this month, with VanEck's filing.

Other companies that have also applied for spot Ethereum ETFs include ARK21Shares, Hashdex, Invesco, BlackRock, and Fidelity, so VanEck's decision on approval will be significant.

In an interview last month, VanEck CEO Jan van Eck expressed skepticism about the SEC's approval of the company's Ethereum spot ETF application in May. Grayscale also withdrew its Ethereum futures ETF application on the 7th of this month, suggesting that approval of the Ethereum spot ETF is still some way off.

Political background that influences approval

It seems that changes in the political situation influenced the SEC's decision regarding this series of developments. The U.S. House and Senate passed a resolution by a majority vote to repeal the SEC's rules on the accounting treatment of digital assets, including cryptocurrencies.

The resolution must be signed by President Joe Biden, who has indicated he will veto it.

Even if the SEC approves the 19b-4 filing for the exchange rule changes, the ETF will not begin trading until the S-1 filing is approved. And because there is no deadline for that process, it could be some time before trading begins.

Still, companies in discussions with the SEC are said to be optimistic in light of the SEC's stance. Seifert and Balchunas, who raised their outlook for approval based on new information and inside sources, also became more optimistic.

Reference: Balchunas X, Seifert X
Image: Shutterstock

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