"Regulators require CBOE and Nasdaq to update their application documents, Fidelity removes currency collateral from Ethereum ETF application"

The U.S. Securities and Exchange Commission (SEC) has reportedly asked major exchanges seeking to list shares of an Ethereum spot exchange-traded fund (ETF) to update key documents related to the product.

The SEC asked exchanges such as the Chicago Board Options Exchange and Nasdaq to quickly update their 19b-4 filings before a key deadline this week, Reuters reported, citing three people familiar with the matter. The move suggests the SEC may approve the applications, Reuters reported.

By Thursday, May 23, the SEC will decide whether to approve CBOE’s applications to list shares of Ark Investments/21Shares and VanEck’s Ethereum ETF.

Sudden change
Prior to this, securities regulators had little involvement with exchanges and issuers on the details of ETF applications. This limited participation, coupled with recent scrutiny of Ethereum-related transactions, has fueled speculation that the agency may reject these ETF applications.

Surprisingly, however, the SEC on Monday asked Nasdaq and CBOE to quickly revise their 194-b filings.

Despite the newfound optimism in the market, there is no guarantee that an Ethereum ETF will be approved and listed for trading this week. Asset managers including VanEck still need the SEC to approve their S-1 filings.

SEC May Delay Decision on Issuer’s Ethereum ETF Application
Nate Geraci, co-founder of the ETF Research Institute, stressed that the SEC must approve the exchange application and the S-1 filing in order for the U.S. Ethereum spot ETF to begin trading.

He speculated that the SEC might approve exchange applications but delay a decision on S-1 filings, given the agency’s low level of engagement with potential issuers.

Nonetheless, Bloomberg ETF analysts Eric Balchunas and James Seyffart raised the probability of the SEC approving an exchange-listed Ethereum ETF to 75% from the previous 25%.

Fidelity Investments Revises Ethereum ETF Application Documents
Meanwhile, top asset manager Fidelity Investments has amended its S-1 filing for an Ethereum spot ETF.

In its initial filing, Fidelity said it would delegate a portion of its future Ethereum fund’s assets to proof-of-stake providers. However, in the updated filing, Fidelity removed all references to delegation, suggesting that the SEC may not allow delegation verification.

Meanwhile, Ethereum’s price has reacted positively to the news and is currently up 23.11tpt3t over the past 24 hours to $3,795, driven by a recovery across the market.

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