Towards approval of the Ethereum ETF in the USA?

The Security and Exchange Commission has urged platforms wishing to facilitate trading in Ether spot ETFs to update their Form 19b-4 as a matter of urgency. This request now makes experts optimistic about the likely approval of spot Ethereum ETFs in the USA. The Ethereum price rose impressively following this announcement.

ETH spot Ethereum is (very likely) on its way) !

A few months later the approval of the Bitcoin ETF, the United States is probably moving towards legalizing another type of ETF. According to information from CoinDesk, the Security and Exchange Commission has asked platforms wishing to list the Ethereum ETF to update Form 19b-4. This announcement comes as the SEC is due to rule on whether or not to approve a VanEck Ethereum ETF this May 23, 2024.

The US SEC’s request does not guarantee 100% approval of the Ethereum ETF. However, inviting platforms to update key documents related to Ethereum ETFs suggests that the chances of approval for this product are now enormous. This is also the view of two ETF analysts at Bloomberg. James Seyffart and Eric Balchunas estimate that the chances of approval for the Ethereum ETF are now 75%.

An unexpected SEC reversal

As the James Seyffart and Eric Balchunas approval of the Ethereum ETF was unlikely before the SEC announcement. Initially, the two experts estimated a 25% chance of approval.

Unlike the adoption process for Bitcoin ETFs, the SEC has not engaged in any dialogue with Ethereum ETF issuers. In addition, the US financial watchdog has stepped up its actions against Ethereum and players linked to this asset. As a reminder Consensys had revealed that the SEC considers Ethereum (ETH) to be a security.

There are several possible reasons for the Security and Exchange Commission’s (SEC) sudden and unexpected turnaround.

The first is probably the vote by the U.S. Senate of the resolution revoking SEC Staff Accounting Bulletin (SAB) 121. This pro-crypto vote is clearly a disavowal of the SEC’s firm stance against crypto.

Furthermore, cryptocurrency is more than ever at the center of the US elections scheduled for this November. Up to 20% of US voters have suggested that the candidate’s stance on cryptocurrency could influence their vote.

In the battle to attract the pro-crypto electorate, Donald Trump seems to be ahead of the game. The former president is multiplying his pro-crypto media outings and embraces crypto in his campaign. The SEC’s decision could be an attempt by his challenger Joe Biden to attract the sympathy of part of the crypto electorate.

The SEC’s announcement had a direct impact on the price of Ethereum (ETH). Indeed, Ether (ETH) has jumped by 17% within a few hours, from $3,100 to over $3,600.