- SEC asks stock exchanges for their 19b-4 filings amid Ethereum There are concerns about the approval of ETFs.
- SEC’s Ethereum Classification Questions Complicate ETF Approval Prospects.
While anticipation is increasing for Ethereum’s adoption [ETH] Exchange Traded Fund (ETF) regulators have initiated new hurdles in the way forward.
The U.S. Securities and Exchange Commission (SEC) has issued a directive for several exchanges to quickly update their 19b-4 filings.
SEC Form 19b-4 filings are used by securities exchanges to propose changes to their rules.
These documents are submitted to the SEC for approval to ensure that any rule changes protect investors and maintain fair and efficient markets.
Nate Geraci, president of The ETF Store, emphasized:
Source: Nate Geraci/X
Positive sentiments persist
This isn’t the first time the SEC has scrutinized Ethereum. Recently, the SEC’s questioning of Ethereum’s classification as a security has led to significant speculation about the extent of the agency’s authority.
On which, Joe LubinCEO of Consensys, had claimed in a recent edition of ‘Bankless’:
“The US is trying to break away from Ethereum.”
I agree with a similar line of thought, Laura BrookoverSenior Counsel at Consensys, claimed on a separate episode of ‘Unchained’:
“If Chairman Gensler gets away with misclassifying Ether as a security, it will be truly catastrophic in the United States.”
Despite all expectations, social media is abuzz with optimism about the possible approval of the ETH ETF. Anthony Pomplianosaid it best when he said:
“If they approve the Ethereum ETF, they are approving the entire sector. This is the last dam to be broken.”
Persistent doubts
However, data from Coin shares painted a very different picture.
According to AMBCrypto’s analysis of CoinShares data, Ethereum continued to experience bearish sentiment this week regarding the potential SEC approval of a spot-based ETF.
As a result, outflows for the week amounted to $23 million.
Source: CoinShares