The final official deadline for a U.S. Securities and Exchange Commission (SEC) decision regarding a spot Ethereum exchange-traded fund (ETF) is swiftly approaching this week, with VanEck's application at the forefront.

VanEck's Application: Setting the Tone

Wednesday, May 23, marks the pivotal date when the SEC will either approve or deny VanEck's application for the first spot Ethereum ETF. The outcome of this decision is anticipated to set the tone for subsequent issuers, including the Ark 21Shares spot ETH ETF, whose application deadline follows on Thursday, May 24.

Awaiting Regulatory Clarity

Numerous issuers, such as Hashdex, Grayscale, Invesco Galaxy, BlackRock, and Fidelity, are eagerly awaiting a decision from the US regulator. However, the approval odds are not looking favorable, as observed by ETF Store President Nate Geraci.

Technical Requirements and SEC Tactics

Geraci highlighted the technical requirements, explaining that the SEC must approve both the 19b-4s (exchange rule changes) and the S-1s (registration statements) for ETFs to launch. There's speculation that the SEC might resort to delay tactics to further evaluate market conditions or specific ETF structures without outright denying the applications.

Commissioner Dynamics and ETH Price Outlook

Five SEC Commissioners will vote on VanEck's ETF on Wednesday, including crypto-friendly Hester Pierce and Mark Uyeda, alongside anti-crypto figures Caroline Crenshaw and Jaime Lizárraga. Gary Gensler, known for his stance on approving spot Bitcoin ETFs, might play a pivotal role in the decision.

The ETH price outlook hinges heavily on the SEC's verdict. While a rejection is expected, some analysts believe the bearish scenario is already priced in. However, a surprise approval could lead to a sudden uptick in ETH prices, which are currently hovering around $3,100.

Conclusion

As the deadline draws near, anticipation mounts in the crypto community regarding the SEC's decision on spot Ethereum ETFs. While regulatory clarity is eagerly awaited, stakeholders brace themselves for potential market reactions based on the outcome of this landmark decision.