SEC Signals Potential Approval for Ethereum ETF, Raising Hopes for Crypto Market Shift

The U.S. Securities and Exchange Commission (SEC) has reportedly ordered exchanges to amend their spot Ethereum exchange-traded fund (ETF) filings. Per a tweet from Bloomberg Intelligence ETF analyst Eric Balchunas, the SEC has mandated that the applicants to:

file on an "accelerated basis" new Form 19b-4 to notify the Commission of a proposed rule change.

Spot Ethereum ETF Approval Odds 75%: Analysts

The same tweet above conveyed the step signaled the SEC's decision to approve the Ethereum ETF applications by the Thursday deadline and, therefore make the likely issuance of the second spot digital asset ETF in the U.S.

Balchunas and the other Bloomberg ETF analyst, James Seyffart, placed the chances of an Ethereum ETF bid to increase from the former 25% to the current 75%.

According to a post that Balchunas shared on Twitter, the prediction was made before the updated Form 19b-4 request.

Nate Geraci wrote in a social media post that the SEC must approve both the 19b-4s and S-1s for exchange rule changes and registration statements for the ETFs to be launch.

Balchunas opined the above might be just "wishcasting," as part of the crypto community had expected.

US Crypto Policy May Flip 180

"If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who's close to this process," said Quadency and Variant Fund Chief Legal Officer Jake Chervinsky.

"That doesn't mean it won't happen."

"It means approval could signal a major shift in US crypto policy after the SAB 121 vote, perhaps more important than the ETF itself," Chervinsky commented.

Seyffart seconded this fact and commented, "This is the correct take. "I was literally in DC last week for @PerianneDC's Blockchain Summit and almost every single person I spoke to said that it was going to be denied." The Biden administration could look more crypto-friendly once the ETFs are approved. Former CFTC commissioner Chris Giancarlo recently said that Donald Trump is the "First Crypto President," who is running for re-election.