According to Reuters, sources revealed that the U.S. Securities and Exchange Commission (SEC) has requested Nasdaq and Cboe to “fine-tune” their spot ethereum exchange-traded fund proposals. Ethereum experienced a 22% increase over the past day, coasting along at $3,785 per unit on Monday at 9:30 a.m. Eastern Time.
Report: Nasdaq and Cboe Asked to Refine Ethereum ETF Proposals
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Reported SEC ‘Fine-Tuning’ Request Fuels Ethereum Rally
The price of ethereum (ETH) has significantly increased since yesterday, peaking at $3,824 at around 7:30 a.m. Eastern Time on Monday. Reuters reported at 8:46 a.m. that “three people familiar with the process” stated that Nasdaq and Cboe were asked by the SEC to “fine-tune” their spot ethereum ETF filings. Reuters noted that it could not be verified whether or not NYSE Arca was contacted by the regulator.
Approximately nine firms have applied to list spot ether ETFs, including Grayscale, Vaneck, 21shares and Ark Invest, Hashdex, Invesco and Galaxy, Fidelity, Blackrock, Franklin Templeton, and Bitwise. The report on Monday detailed that the fine-tuning process usually precedes SEC approval, according to three individuals familiar with the situation who spoke to Reuters. The report also mentioned that the SEC, Ark Invest, Cboe, and Nasdaq were contacted for comments, but the firms declined to respond.
Speculation began to stir on Monday, leading two Bloomberg ETF analysts to increase the chances of approval from 25% to 75% after the rumors started circulating. Some believe the Biden administration and Democrats are attempting to gain favor before the November 2024 general election, following two years of strict treatment towards the crypto industry. Meanwhile, ETH prices have climbed, rising 22% over the past 24 hours and 30% over the past week.
In a note to Bitcoin.com News, Jeff Owens, co-founder of layer one (L1) blockchain Haven1, stated that SEC approval could ignite an altcoin season. However, Owens also cautioned that the approval might turn into a ‘sell the news’ event, similar to the aftermath of the spot bitcoin ETF approvals.
“The unexpected move in ether’s price demonstrates the high stakes surrounding the SEC’s potential approval of a spot ETH ETF,” Owens said. “If an approval comes through, it could kick-start a widespread altcoin rally. We’ve already seen the impact on ETH, and on the price of most altcoins, especially L2s like Arbitrum and Optimism, and defi stalwarts like Uniswap and Aave.”
Owens added:
However, let’s not forget that the approval is still not guaranteed. The markets are reacting strongly to speculation. If the market’s expectation is wrong, we could see a significant price correction. Even if the SEC does approve these funds, traders may initially ‘sell the news,’ leading to short-term volatility. Any investment strategy should consider these factors and avoid making trading decisions based on emotion alone.
What do you think about the Reuters report about the SEC reportedly asking exchanges to “fine-tune” their ETF filings? Share your thoughts and opinions about this subject in the comments section below.
