Will the U.S. SEC Bypass ‘Security’ Concerns to Approve Spot Ethereum ETF?

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As a seasoned crypto investor with a keen interest in Ethereum and its regulatory developments, I find myself closely monitoring the latest news regarding the SEC’s stance on Ethereum ETFs. The recent request for 19b-4 filings from issuers has certainly stirred up optimism within the community, as it could potentially signal a shift in the regulator’s position on Ethereum’s ‘security’ status.

When the U.S. Securities and Exchange Commission (SEC) requested Ethereum ETF issuers to submit their 19b-4 filings, there was widespread excitement in the market as it suggested a greater chance of approval. Previously, Ethereum’s ‘security’ classification had been a significant hurdle for ETF approval. Now, with the SEC directly engaging issuers for these filings, there is speculation that the regulator might be prepared to overlook earlier concerns.

SEC May Differentiate Between ETH and Staked ETH

Expert: Galaxy researcher Alex Thorn shares his thoughts on the ongoing debate about the Securities and Exchange Commission (SEC)’s position regarding Ethereum Exchange-Traded Funds (ETFs). According to Thorn, if the SEC is contemplating a change in stance, they may differentiate between Ethereum (ETH) as a cryptocurrency and staked Ethereum (stETH) or “ETH through staking services” as securities.

Thorn points out that adopting this method might harmonize with the SEC’s ongoing lawsuits and probes, thereby enabling the authorization of Ethereum ETFs without conflicting with the regulator’s previous views. This subtle distinction could pave the path for regulatory approval of Ethereum ETFs.

If the rumors about a potential 180-degree shift in SEC’s stance on Ethereum ETFs are accurate, I would surmise that they aim to navigate a delicate balance between “ETH” being classified as non-securities and “staked ETH” (or even more tenuously, “staking-as-a-service ETH”) being considered securities.
that would be somewhat congruent with…
— Alex Thorn (@intangiblecoins) May 21, 2024

As a crypto investor, I believe that Anthony Pompliano’s statement holds significant weight in the cryptocurrency world. If the Ethereum ETF (Exchange-Traded Fund) gets approved, it will be a game-changer for the entire industry from my perspective. This approval would signify that regulators are acknowledging the maturity and legitimacy of Ethereum and by extension, the broader crypto market. It would remove a major hurdle towards wider regulatory acceptance, making it an essential step forward in the evolution of this industry.

Despite his elated reaction to the approval of the Ether ETF, crypto advocate @AdamAssets expresses skepticism: “I find it hard to believe. The Ethereum Foundation disregarded securities regulations so openly. Effectively granting a carte blanche for unregistered investment contract sales from that moment on.”

ETH Price Action

As a researcher studying the Ethereum market, I’ve observed a significant surge in its price within the past day, with gains exceeding 20%. However, I must caution that this volatility is likely to persist until we receive an official announcement from the Securities and Exchange Commission (SEC).

As an analyst at QCP Capital, I would point out that if the Securities and Exchange Commission (SEC) gives its approval for a spot Ethereum Exchange-Traded Fund (ETF), the price of Ethereum (ETH) could potentially surge past $4,000 and even reach $5,000. Conversely, should the SEC deny the application, there is a risk that ETH’s price might dip down to $3,000.

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2024-05-21 10:32