Five potential issuers of spot Ethereum exchange-traded funds (ETFs) have swiftly amended their 19b-4 filings following last-minute feedback from the United States Securities and Exchange Commission (SEC). This group includes prominent asset managers like Fidelity, VanEck, and Franklin Templeton, alongside joint applicants such as Galaxy and Invesco, and ARK Invest with 21Shares.
The recent amendments saw major changes, with Fidelity, Franklin Templeton, and ARK 21Shares removing provisions for Ether staking. According to Fidelity’s revised filing, neither the Trust nor any associated parties will engage in any action where the Trust’s ETH is involved in Ethereum proof-of-stake validation or used to generate additional income. Grayscale, another key player, also eliminated staking from its filings, as noted in a proxy statement.
Adam Cochran, a partner at Cinneamhain Ventures, remarked that excluding staking from the ETF could enhance staking returns. Echoing this sentiment, Ethereum community member Ryan Berckmans added that ETFs without staking boost Ethereum’s legitimacy without diluting staking yields.
All five Chicago Board Options Exchange (CBOE)-sponsored filings were submitted within a 25-minute window on May 21, as highlighted by Bloomberg ETF analyst James Seyffart. These amended filings must now be paired with signed-off S-1 registration statements before the ETFs can officially launch. Seyffart noted the potentially long road ahead for these ETFs, emphasizing that these filings confirm ongoing rumors and speculations. The SEC’s decision on VanEck’s application is imminent, with a deadline set for May 23. Industry experts predict the SEC may simultaneously address all pending applications, much like its handling of spot Bitcoin ETFs earlier this year.
The SEC’s request for applicants to expedite their filings on May 20 led analysts Seyffart and Eric Balchunas to increase the approval odds for spot Ether ETFs from 25% to 75%. This development has positively influenced Ethereum’s market performance, with ETH prices rising 20.6% to approximately $3,800, according to CoinGecko. BlackRock and Hashdex are also in the race for SEC approval, adding to the competitive landscape of spot Ether ETF applications. The financial world eagerly awaits the SEC’s next move, which could significantly impact the future of Ethereum ETFs and the broader cryptocurrency market.