- The Chicago Board Options Exchange has lodged two applications for Ethereum ETFs with the SEC.
- 19b-4 filings by the exchange mandate the SEC’s careful review and final decision on rule adjustments for product listings.
- Predictions suggest the SEC might conclude by May 23, 2024, on the submitted Ethereum ETF applications.
Chicago’s notable stock exchange, the Chicago Board Options Exchange (CBOE), has recently submitted applications concerning the launch of Ethereum-based exchange-traded funds (ETFs). The step has shifted attention towards the U.S. Securities and Exchange Commission (SEC) as they prepare to make a pivotal judgment.
The CBOE, on September 6, lodged two applications focused on the inclusion of ARK 21Shares Ethereum ETF and VanEck Ethereum ETF on their BZX Exchange platform. Such applications, known as 19b-4 filings, are integral. They notify the SEC to evaluate necessary rule modifications for the listing of these products.
Historical data suggests that Ethereum ETF applications aren’t new to the SEC. ARK Invest, in tandem with 21Shares, had submitted their joint S-1 application on the same day, September 6. Furthermore, VanEck had already approached the SEC with its application in July 2021.
James Seyffart, an acknowledged ETF analyst from Bloomberg, shared his perspective on this evolving situation via Twitter. Elaborating on the vital nature of the 19b-4 submissions, Seyffart emphasized that such applications lay the groundwork for the SEC’s final verdict. According to his predictions, a definitive decision from the SEC may be on the horizon around May 23, 2024.
In a related development, the SEC had dropped hints on August 17, suggesting they might be open to endorsing Ethereum Futures investment items. Simultaneously, renowned financial firms like Grayscale Investments and BlackRock have shown interest and are eagerly awaiting nods for their respective Bitcoin ETF products.
For those unfamiliar, it’s valuable to distinguish between an S-1 filing and a 19b-4 form. An S-1 application showcases a firm’s ambition to list a particular investment on an exchange. In contrast, a 19b-4 form bears more weight, as it compels the SEC to examine the submission in detail and arrive at a decision. However, it’s worth noting that the SEC retains the right to delay the final decision, as seen with earlier Bitcoin ETF proposals.
The spotlight is now fixed on the SEC, with the financial community waiting in anticipation for the inaugural U.S. Ethereum ETF approval.