Spot Ethereum ETF Decision Looms as SEC’s Deadline Draws Near

• Spot ETH ETFs can’t trade on exchanges until the SEC approves their 19b-4s and S-1 forms.
• After the 19b-4s are approved, the exchange-traded funds may be listed on exchanges.

Since this week is when the decision on the spot Ethereum ETF will be made, let’s take a look at what the week ahead may bring in terms of possible outcomes. Both the 19b-4s (changes to exchange rules) and the S-1s (registration statements) must be approved before spot Ethereum ETFs may trade on Wall Street.

But they can’t trade on exchanges until the SEC approves their 19b-4s and S-1 forms. The U.S SEC receives proposals for rule changes or new products from national securities exchanges like the NYSE or Nasdaq via filings referred to as Rule 19b-4. Exchanges cannot issue Ethereum ETFs without first obtaining SEC clearance for the corresponding paperwork.

All Eyes on SEC

The exchange will essentially be asking for authorization to include these new Ethereum products onto its trading platforms as part of this procedure.

When issuing new securities to the public, the first form that must be filled out is the S-1. It gives prospective investors and the SEC a rundown of the company’s financials, operations, and management. For exchange-traded funds (ETFs), this document lays out the fund’s structure, management, and strategy for trying to match Ethereum’s performance.

Before ETFs may be sold to the public, the SEC must approve the 19b-4 filings and the S-1 registration forms. To make an initial decision on the 19b-4 filings, the SEC usually has a statutory limit of 45 days, which may be extended up to 240 days. After the 19b-4s are approved, the exchange-traded funds may be listed on exchanges. But the ETFs can’t be offered to investors lawfully until the S-1s are approved.

Even if the SEC gives the go-ahead for the 19b-4s, it may take its time approving the S-1s. Because of this, the time it takes for the regulator to examine and approve these papers can be much longer.

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