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SEC Begins Talks with Ethereum ETF Issuers

The U.S. Securities and Exchange Commission (SEC) has begun initial discussions with potential Ethereum ETF issuers about their S-1 registration statements, according to a source.

“It’s just the beginning,” said a senior representative from one issuer regarding the S-1 forms discussions. “It seems like the Division of Investment Management was somewhat taken by surprise by the shift in direction. So, we’re just starting.”

The source added that while they don’t expect the push for an Ethereum ETF to be abandoned, they remain cautious.

To approve Ethereum ETFs, the SEC must first approve the 19b-4 forms—as they did for Bitcoin ETFs in a single order—followed by the S-1 registration statements becoming effective before trading can commence.

Typically, these forms are sent back for revisions before final approval. Although there has been significant progress on the 19b-4 forms, only Fidelity has recently filed an amended S-1 form. With discussions on S-1 forms now starting, more amendments may follow.

Today is a crucial decision day for the SEC regarding Ethereum ETFs.

For the 19b-4 forms, the SEC has a deadline today to approve or deny the VanEck Ethereum ETF’s 19b-4 form. Given the intent to possibly approve multiple issuers simultaneously—similar to the Bitcoin ETFs—there is optimism that, if approved, it could happen today.

Bloomberg ETF analyst Eric Balchunas tweeted that he expects the SEC’s decision around 4 p.m. ET, noting that previous announcements for spot BTC were made around 3:45 p.m., with others shortly after 4 p.m. However, even if the 19b-4 forms are approved, finalizing the S-1 forms might take longer, potentially delaying the start of trading.

In a recent interview with The Block, Balchunas remarked, “I’m not sure how quickly things will move, but expect a frantic few days, maybe even weeks—depending on the S-1 forms.”

Also read: Dogecoin creator has spoken out about Ethereum ETFs

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