The U.S. Securities and Exchange Commission (SEC) requires exchanges to update their Ethereum Exchange Traded Fund (ETF) filings.
According to a recent post shared by Bloomberg Intelligence ETF analyst Eric Balchunas, the SEC is asking applicants to file a new Form 19b-4 on an “expedited basis” to inform the Commission of the proposed rule change.
Chances of Ethereum ETF approval are now 75%
The post suggested that the move indicates the SEC’s tendency to approve Ethereum ETF applications by Thursday’s deadline, marking the potential issuance of a second ETF for the digital asset in the United States.
Balchunas and another Bloomberg ETF analyst, James Seyffart, estimated that the chances of Ethereum ETF approval have increased significantly from the previous 25% to the current 75%. The prediction was made before the updated Form 19b-4 application was filed.
The ETF store’s president, Nate Geraci, said in a social media post that the SEC needs to approve both 19b-4 and S-1 to make changes to exchange rules and registration statements in order for the ETFs to launch.
Although some in the crypto community expected approval, Balchunas believed that this was merely “wishful thinking.”
US crypto policy may turn 180 degrees
“If the ETH ETF is approved, it will be a real shock to everyone I know in DC who is close to the process,” – said Jake Chervinsky, legal director of Variant Fund. “That doesn’t mean it won’t happen.”
“It means that the approval could signal a major shift in U.S. crypto policy following the SAB 121 vote, perhaps more important than the ETF itself,” – Chervinsky said.
Seyffart echoed that statement, saying: “This is the correct approach. I was literally in Washington D.C. last week for the @PerianneDC Blockchain Summit, and almost every person I talked to said it would be rejected.
The Biden administration may look more cryptocurrency-friendly after approving ETFs. Former CFTC Commissioner Chris Giancarlo recently said that Donald Trump is the “first cryptocurrency president” to run for re-election.
