Fidelity Submits Updated S-1 Application for Spot Ether ETF Amid Changed SEC Stance
Summary:
Fidelity has submitted an updated S-1 application to the US Securities and Exchange Commission (SEC) for its proposed Ether exchange-traded fund (ETF), specifying that the ETF's inherent Ether tokens will not be staked. This follows reports of the SEC reversing stance on Ether ETFs and instructing issuers to revise their 19b-4 filings. The next SEC deadline is for VanEck's Ether ETF proposal on May 23. While analysts have raised the approval odds, approval for the S-1 applications is still required, likely influencing when a functional ETH ETF will emerge.
Fidelity has submitted an enhanced S-1 proposal to the United States Securities and Exchange Commission (SEC) for its proposed Ether exchange-traded fund (ETF). The financial services corporation has apparently submitted an improved S-1 proposal indicating that the ETF's inherent Ether (ETH) tokens will remain unstaked. S-1 proposals are compulsory for the SEC for initiating publicly traded financial instruments in the US. This updated application comes after the revelation that the SEC might be doing an about-face on Ether ETFs, presumably due to political motivations, with news suggesting that ETF issuers have been asked to revise their 19b-4 applications. The SEC's next deadline is set for VanEck's Ether ETF proposal on May 23. While veteran Bloomberg ETF analyst Eric Balchunas has escalated the approval probability to 75%, up from a measly 25%, this solely applies to the 19b-4 form. However, issuers of Ether ETFs will also need to secure approval for their S-1 applications, as indicated by James Seyffart, another Bloomberg ETF analyst, in a May 20 X post. Seyffart stated, "We also require S-1 approvals. It might be several weeks, or months, before S-1 approvals are in place and hence a functional ETH ETF.“ He added, "That being said, if our predictions are correct and we witness these hypothetical approvals later this week, it *should* infer that S-1 approvals are a question of 'when', not 'if'…" In related news, Grayscale CEO Michael Sonnenshein has stepped down. More information to this developing narrative will be updated as it becomes accessible.
Published At
5/21/2024 1:32:26 PM
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