Ali McCartney, Managing Director of UBS Private Wealth Management, discusses how geopolitical tensions are impacting the market on how money is made.
U.S. securities regulators on Monday asked Nasdaq, CBOE and NYSE to fine-tune their applications to list Spot Ether exchange-traded funds (ETFs), raising the possibility that the agency may be prepared to approve the applications. people familiar with the process told Reuters. .
Securities and Exchange Commission officials have asked exchanges to submit revised proposals by the end of Tuesday, two of the people said.
The exchange application is the first step in a two-step approval process, but the green light from the SEC would represent a huge and surprising victory for the crypto industry, which was expecting a thumbs down.
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Ethereum’s price soared as much as 18% on Monday and rose another 8.6% to $3,802 late Tuesday morning before retreating slightly to hover around $3,747 on Tuesday afternoon.
The SEC has until the end of this week to decide whether to approve the application filed by the CBOE to list the Ether ETF offered by VanEck and ARK Investments/21Shares. The SEC had not worked with exchanges or issuers on the details of the filing, and industry executives expected the SEC to deny the filing.
But in a surprise move, SEC officials on Monday asked Nasdaq, CBOE and NYSE to quickly update and make changes to their filings, which they said are typically done ahead of approval. Regulatory issues are being discussed, people familiar with the process said on condition of anonymity.
Spokespeople for the SEC, CBOE, Nasdaq, NYSE and 21Shares, which worked with ARK Investments on the filing, declined to comment. An ARK spokesperson did not respond to a request for comment.
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The exchange’s filing seeks SEC approval for the rule changes needed to list the new product, but the issuer must seek regulatory approval for the ETF registration statement before it can begin trading.
Unlike with exchange applications, there is no set deadline for the SEC to decide on a registration application, so it could still be several months before Ether ETFs begin trading.
“This could take at least 60 days,” said Stephen McClurg, head of U.S. asset management at CoinShares. CoinShares launched a Spot Bitcoin ETF in January, but has not filed for an Ether ETF.
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“These applications contain hundreds of pages of disclosure information,” he said. “I can’t imagine being able to review this in time for release by May.”
After the SEC approved an ETF tracking Ether futures in October, the first issuers filed for Spot Ether products. However, market participants expected the SEC to reject the Ether ETF application, citing a discouraging unilateral meeting with regulators.
The SEC, led by crypto skeptic Gary Gensler, had rejected spot Bitcoin ETFs for more than a decade due to market manipulation concerns, but approved them last year after Grayscale Investments won in court. was forced to.
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These products are attracting purchase interest from a wide range of hedge funds, wealth advisors, and individual investors. Within his first week, two new Bitcoin funds amassed more than $1 billion in assets.
