Anticipation Mounts as Ether ETFs Await SEC Approval Following VanEck's Listing
Summary:
The anticipation for a spot Ether exchange-traded fund (ETF) approval rises as VanEck's ETF gets listed by the Depository Trust and Clearing Corporation under the ticker "ETHV." The SEC has reportedly asked major exchanges to revise their spot Ether ETF applications, indicating potential approval. Updated applications follow last-minute directives from the SEC, notably removing provisions for ETH staking. The SEC's move precedes its judgement on VanEck's application, signaling potential approval for Ether ETFs.
The anticipation for a spot Ether exchange-traded fund (ETF) approval builds up as VanEck's ETF becomes listed by the Depository Trust and Clearing Corporation (DTCC) under the ticker "ETHV." The United States Securities and Exchange Commission's (SEC) seeming shift in stance towards spot Ether ETFs has escalated since May 21, following their reported demand for top exchanges to refine their applications - a request complied with by at least five so far.
VanEck's ETF, now a part of the DTCC - an American financial infrastructure provider that offers crucial clearing, settlement, and transaction reporting services to the financial market - is a significant step nearer to receiving SEC's final nod for launch. Currently, their ETF is marked as inactive on DTCC's site, implying it waits on regulatory compliance clearances. Still, VanEck isn't the first in line. Franklin Templeton's spot ETH ETF had made it to DTCC's list a month before.
Five prospective Ether ETF providers, including Fidelity, Franklin Templeton, and ARK 21Shares, have revised their 19b-4 applications in response to the SEC's latest advice. They have notably done away with the stipulations for ETH staking, following the SEC's last-minute directives.
According to Reuters, the SEC has reportedly reached out to Nasdaq, the Chicago Board Options Exchange, and the New York Stock Exchange requesting them to revise their spot Ether ETF applications. This move has come right before the SEC's scheduled judgement date on whether to green-lit or reject VanEck’s proposals, post 240 days of delaying the process.
Analysts see this request for revisions as a strong hint that the SEC might be prepared to sanction the products. Bloomberg's ETF analysts have increased their prediction this week of the SEC approving the spot Ether ETFs. Speculation is rife that post VanEck's application acceptance on May 23, the SEC will also give the nod to other ETF applicants like Ark 21Shares, BlackRock, Fidelity, and more. However, as of now, the securities regulator has not publicly indicated whether it will approve or reject VanEck's application.
Reported by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
5/22/2024 3:56:30 PM
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