The US Securities and Exchange Commission (SEC) has reportedly asked Nasdaq and CBOE to look into their applications linked to the listing of spot ether exchange-traded funds (ETFs). This communication signals a possible approval that can mark another crypto industry win.
SEC making final moves
This major move comes as a surprise for the market and that too given the industry’s expectation of a rejection. According to the report, the SEC’s request for updates to the filings is just a move before approval. However, this has fueled optimism among market participants.
The commission must decide on the applications filed by CBOE for ether ETFs from VanEck and ARK Investments/21Shares by the end of the week. The report could not verify if NYSE Arca, another exchange involved, had also been contacted by the SEC.
Amid all these things, Ethereum price has surged by more than 23% in the last 24 hours. ETH is trading at an average price of $3,773, at the press time. It is expected that Ether might move ahead to break its all time high (ATH) of $4,891 recorded on November 16, 2021.
ETH’s 24 hour trading volume jumped by a massive 336% to stand at $48.35 billion. The biggest altcoin is holding a market cap of $453 billion.
What’s next?
The exchange applications represent the first step in a two-step approval process. While they seek the watchdog’s approval for a rule change to list new products. The issuers still need the SEC to approve ETF registration statements before trading can commence. There is no set time frame for this final approval, meaning it could still take several months before ether ETFs begin trading.
The first issuers filed for spot ether ETFs after the SEC approved ETFs tied to ether futures in October. Despite the approval of ether futures ETFs, market participants expected the SEC to reject spot ether ETF applications due to discouraging and one-sided meetings with the regulator.
Led by crypto skeptic Gary Gensler, the SEC has historically rejected spot bitcoin ETFs over concerns about market manipulation. However, the SEC was forced to approve spot bitcoin ETFs after Grayscale Investments won a court challenge last year.
These products have since attracted high interest from hedge funds, wealth advisors, and retail investors, with two new bitcoin funds amassing over $1 billion in assets within their first week.
