Fidelity Removes Staking Ethereum ETF Filing SEC Asks CBOE Nasdaq Update Filings

SEC asks leading exchanges to update documents for Ethereum ETFs. Approval could be imminent, with potential positive impact on Ethereum price.

The U.S. Securities and Exchange Commission (SEC) is reportedly requesting major exchanges looking to list Ethereum spot-based exchange-traded funds (ETFs) to update crucial documents related to the product. According to Reuters, the SEC has asked exchanges like CBOE and Nasdaq to quickly update their 19b-4 filings before a significant deadline this week, indicating potential approval of the filings.

By Thursday, May 23, the SEC will make a decision on CBOE's application to list Ethereum ETF shares from Ark Investments/21Shares and VanEck. Previously, the SEC had limited engagement with exchanges and issuers regarding ETF filings, leading to speculation that the agency might reject these applications due to recent scrutiny of Ethereum transactions.

Surprisingly, on Monday, the SEC requested Nasdaq and CBOE to swiftly modify their 194-b filings. However, despite this positive development, approval of Ethereum ETFs this week is not guaranteed. Asset management firms like VanEck still require SEC approval for their S-1 applications to offer these products.

Nate Geraci, co-founder of The ETF Institute, highlighted that both exchange filings and S-1 applications must be approved for spot-based Ethereum ETFs to trade in the U.S. He suggested that the SEC might approve exchange filings but delay decisions on S-1 applications due to limited engagement with issuers.

Bloomberg's ETF analysts, Eric Balchunas and James Seyffart, raised the odds of SEC approval for listing Ethereum ETFs to 75%, up from their previous forecast of 25%. Additionally, Fidelity Investments has updated its S-1 application for a spot-based Ethereum ETF, removing references to staking, indicating potential SEC restrictions on staking activities.

The price of Ethereum reacted positively to the news, rising by 23.1% in the past 24 hours to $3,795 amidst a broader market resurgence. This development signifies growing interest and optimism surrounding the potential approval of Ethereum ETFs by the SEC.

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