SEC Steps Up Focus on Spot Ether ETFs; Fidelity Confirms No Staking in Application
Summary:
The US Securities and Exchange Commission (SEC) has reportedly increased its focus on spot Ether exchange-traded funds (ETFs), urging key exchanges to revise their applications. Meanwhile, asset manager Fidelity has confirmed it won't be staking the underlying ETH tokens of its ETF. Analysts perceive this SEC stance as a strong indication of the possible approval of these applications. The verdict on VanEck's application, scheduled for May 23, could set the course, impacting ETF applications from other major firms including Ark 21Shares, BlackRock, and Fidelity.
The US Security and Exchange Commission (SEC) has purportedly increased its focus on spot Ether exchange-traded funds (ETFs), reportedly requesting significant exchanges to revise their applications on May 21. In its application for a spot Ether ETF, renowned asset manager Fidelity updated that the associated ETH tokens won't be staked.
Sources revealed that SEC had reached out to Nasdaq, the Chicago Board Options Exchange, and the New York Stock Exchange, urging them to revise their applications for spot Ether ETFs. This move materialized days before the SEC's scheduled decision on either approving or dismissing VanEck's spot ETH applications, an approval procedure that had been postponed for 240 days.
The additional request from the SEC is considered by experts to be a strong indication of probable approval. Bloomberg's ETF analysts previously predicted a high chance of the SEC endorsing the spot Ether ETFs this week. The expectation is that following the approval of VanEck's application on the 23rd of May, the SEC will most likely approve ETF applications from other firms, such as Ark 21Shares, BlackRock, Fidelity, among others. However, till now, the SEC has not commented publicly on whether it will approve or deny VanEck's application.
Fidelity has adjusted its Ether ETF S-1 filing with the SEC, stating it won't be staking the underlying ETH tokens of the ETF. These S-1 filings are necessary for the SEC to authorize the public release of securities products in the United States.
The next significant date is May 23, the proposed deadline for VanEck's Ether ETF. Although Bloomberg's seasoned ETF analyst, Eric Balchunas has raised the approval probability to 75% from 25%, this solely applies to the 19b-4 form.
Crypto enthusiasts are keeping an eye on a possible spot Ether ETF approval. This follows news that the SEC is considering a pivot on spot Ether ETFs - possibly due to political pressure. Subsequently, it has requested ETF exchanges to update their 19b-4 filings.
Ether has seen remarkable growth of 19.4% in the past day, bringing its value to $3,685, the highest since April 9, as noted by CoinGecko.
Contributions to this report were made by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
5/21/2024 9:13:12 PM
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