The US Securities and Exchange Commission (SEC) has reportedly requested both Nasdaq and the Chicago Board Options Exchange (Cboe) to make appropriate updates in their applications to list Spot Ethereum ETFs, according to a Reuters report.
Indeed, the request comes amid a rise in expectations regarding the possible approval of the ether-based investment product. Earlier this week, Bloomberg increased the probability of Ethereum ETF approval from the previous 25% to a remarkable 75% probability.
Also read: Fidelity Modifies Ethereum ETF and Eliminates ETH Staking
SEC filing for ETH ETF filing update from Nasdaq, Cboe
Early 2024 saw the SEC issue a landmark approval for the inaugural Spot Bitcoin ETFs in the United States. That development led to massive success for the leading cryptocurrency, with BTC soaring to an all-time high of $73,000 just months later.
Since then, the digital asset market has been carefully observing which assets could soon follow suit. Naturally, all eyes turned to the second largest digital asset, Ethereum. However, the prospects appeared to dim due to the SEC's reluctance to clarify its security status.
Conversely, things have certainly changed now that the agency has called for reviews of the investment product. One such request from the SEC was filed with both Nasdaq and Cboe, calling for updates to their applications to list spot Ethereum ETFs.
Also read: SEC Asks Exchanges to Update 19B-4 Registrations for Spot Ethereum ETFs
The conversations were certainly surprising, as these requests for exchanges usually precede approval. Indeed, it certainly seems to be a step towards an approval that seems all the more inevitable. Currently, Nasdaq and Cboe are the only exchanges contacted.
The requests have certainly changed the narrative and skyrocketed expectations for the investment product. Subsequently, Ethereum's price has responded to the speculation, rising as much as 22% in the past 24 hours, according to CoinMarketCap.
The cryptocurrency is currently trading above the $3,770 level, with volume skyrocketing 300% below market-wide expectations. As talks between the SEC and issuers take a turn, all eyes are on when the investment product could be approved, rather than if.