Ethereum ETFs Get Nearer to Listing as Corrected Files Accumulate

  • On Monday, five asset managers submitted revised proposals to the SEC, and one analyst anticipated additional modifications.

A number of asset managers’ updated files indicate that the clearance process is moving quickly as the cryptocurrency market waits for regulatory permission for spot Ethereum ETFs.

The VanEck Ethereum Trust is the new name for the product that VanEck announced when it submitted a revised registration statement for its spot Ethereum ETF on Monday. 21Shares followed suit, submitting a fresh registration for their spot Ethereum ETFs after that.

After that, Grayscale entered the fray with two of its own updated filings, one for the $28 billion Grayscale Ethereum Trust and the other for a tiny version meant to be a less expensive substitute.

Fidelity and BlackRock then filed an amended application for their spot Ethereum ETF, after which Franklin Templeton did the same.

Details about their anticipated fees, which Bloomberg ETF analyst Eric Balchunas claimed the SEC had not yet demanded, were absent from all of Monday’s filings. He proposed that there would be one more set of modifications, this time including costs, and then it would be game on.

He said, “If you were to force me to guess a date in a gun-to-head manner, I’d say July 18th.”

A few other small adjustments were in line with Bitwise’s announcement from last week outlining the Securities and Exchange Commission’s (SEC) position on compliance in the cryptocurrency sector. The paragraph makes it clear that SEC Chair Gary Gensler thinks certain actions by cryptocurrency exchange users may violate securities laws and that investors using these platforms aren’t sufficiently safeguarded.

According to VanEck’s filing, the chair emphasized the need for the SEC to have more powers in order to stop deals, goods, and platforms from “falling between regulatory cracks.” Federal legislation focusing on digital asset trading was demanded by the chair.

Among other small print, the company provided comparable disclosure language on the SEC’s regulatory initiatives in the 21Shares amended registration statement.

Nothing to see here, Balchunas tweeted about 21Shares’ filing under the handle X.

Lastly, a new section in Grayscale’s revised application for its “mini” ETF clarifies that no Ethereum would be staked in the product—staking is the method by which Ethereum tokens are assigned to the network in return for benefits.

The SEC has not received any applications that address Ethereum staking. Some applicants removed the text from their submissions prior to the regulator’s approval.

Even though the SEC granted approval to a number of significant filings for Ethereum ETFs in May, eight asset managers’ S-1s remain pending approval. In the past, Gensler stated that asset managers’ capacity to make complete disclosures determines the approval process.

The trading of spot Ethereum ETFs could happen soon, according to Bloomberg ETF expert James Seyffart, who also noted Bitwise’s updated filing from last week. He predicted that the product debuts wouldn’t be too far off, either this week or next.

In the meantime, Ethereum’s price has lost almost all of the gains that came with the acceptance of these items. Ethereum’s price peaked at about $4,000 in late May in tandem with the SEC’s move, but since then, it has fallen below $3,000 due to more general challenges in the cryptocurrency market.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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