ETH ETF Approval Imminent? SEC Requests Accelerated Updates to Ether ETF Filings

The U.S. Securities and Exchange Commission (SEC) has recently made an unexpected move towards the potential approval of spot Ether exchange-traded funds (ETFs).

According to reports, the SEC has asked exchanges interested in listing Ether ETFs to update their 19b-4 filings on an accelerated basis. This suggests that the regulatory body may be gearing up to approve these ETF applications ahead of a critical deadline on Thursday.

TLDR

The U.S. SEC has asked exchanges to update their 19b-4 filings for Ether ETFs on an accelerated basis, suggesting potential progress towards approval.
Ether surged 17% to over $3,600 following the news, and the CoinDesk 20 rose nearly 8% amid positive regulatory developments.
The chances of an Ether ETF being approved by May 31 jumped from 10% to 55% on Polymarket, while the odds of approval by June 30 are currently at 68%.
Despite the progress, the SEC could still reject the S-1 registration statement of the Ether ETF, delaying its approval and trading commencement.
The SEC’s decision on Ether ETFs could significantly impact the cryptocurrency market, driving innovation and growth in crypto-based financial products.

The news has had a significant impact on the cryptocurrency market, with Ether surging 17% to over $3,600 and the CoinDesk 20, a measure of the performance of the market’s largest digital assets, rising nearly 8%.

The sudden surge in Ether’s price and the overall positive sentiment in the market can be attributed to the increased likelihood of Ether ETF approval.

Polymarket, a decentralized prediction market platform, has seen a substantial jump in the odds of an Ether ETF being approved by May 31, rising from 10% to 55% following the SEC’s request for updated filings.

Another Polymarket contract asking if the ETF will be approved by June 30 is currently trading at 68%, further indicating the growing optimism surrounding the potential approval.

However, it is important to note that despite the progress in the 19b-4 filings, the SEC could still reject the S-1 registration statement of the Ether ETF, which would delay its approval and trading commencement.

The regulatory body has been investigating whether Ether, the native asset of the Ethereum blockchain, is a security, particularly in light of Ethereum’s recent transition from a proof-of-work to a proof-of-stake consensus mechanism.

If approved, Ether ETFs could follow the trajectory of Bitcoin ETFs, which were approved in January 2024 and led to