The SEC has told the stock exchanges that it is leaning toward approving the spot Ethereum ETFs, according to a Barron Report. Reports emerged on Monday that the SEC changed its mind about the future of Ethereum funds, and the agency decided to speed up the process of reviewing applicants' documents.
Currently, the SEC allows ETFs to hold Ether futures, but this approval would allow them to hold the currency themselves. Yesterday, the SEC asked exchanges to update their 19B-4 filings for their Spot Ethereum ETFs. It appears the agency is moving quickly toward a possible approval by a crucial Thursday deadline.
Additionally, before approving the Ethereum ETFs, the SEC must approve the 19b-4s (changes to exchange rate rules) and S-1s (registration statements). Once approved, both will likely see all ETF applications approved simultaneously, allowing the funds to go live. It took the US regulator a significant amount of time to approve Bitcoin ETFs, and the same is expected for the Ethereum ETFs.
Also Read: SEC Asks Exchanges to Update 19B-4 Registrations for Spot Ethereum ETFs
The 19b-4 forms must be approved Thursday. Spot Ethereum ETFs could hit the market live as soon as this week if everything is approved. The SEC has not yet commented on reports that it could approve the ETFs this week.
Ethereum is up 20% at the time of writing and is trading at $3,777.51. It has the second largest market capitalization of all cryptocurrencies, second only to Bitcoin.