SEC Urges Major Exchanges to Update Ether Spot ETF Applications; Decision on VanEck Looms
Summary:
The US Securities and Exchange Commission (SEC) has reportedly asked major American exchanges to update their applications regarding the listing and trading of Ether (ETH) spot exchange-traded funds (ETFs). The SEC must make a decision on VanEck's ETH spot ETF by May 23, a decision that could open the door for other notable companies to get their ETH spot ETFs approved. Fidelity has amended its application to state that the Ether connected to the investment will not be staked, suggesting this could be a requirement for approval.
The US Securities and Exchange Commission (SEC) has supposedly contacted significant American exchanges to modify their applications for listing and trading Ether (ETH) spot exchange-traded funds run by asset managers. This news, reported by Reuters on May 21, reveals that SEC representatives have asked Nasdaq, the Chicago Board Options Exchange (CBOE), and the New York Stock Exchange (NYSE) to revise and modify existing Ether spot ETF applications before an impending regulatory cut-off. The commission must decide to either accept or reject VanEck's Ether spot ETF on May 23, after a 240-day delay. The appeal for such alterations from US exchanges could indicate possible regulatory endorsement. On May 20, a pair of ETF analysts increased the likelihood of the SEC approving an Ether-tied spot ETF from 25% to 75%, based on rumors indicating that applicants should expedite their 19b-4 applications. The exchanges have to submit these 19b-4 and S-1 registration documentation to the SEC before any Ether spot ETFs can be listed. If the SEC greenlights VanEck's application, it might open doors for Ether spot ETFs by ARK 21Shares, BlackRock, Fidelity, Hashdex, and Invesco Galaxy. Fidelity has updated its S-1 document to mention that the Ether connected to the investment entity will not be staked, implying that such a condition might be prerequisite for approval. However, it's still possible that the commission may reject the Ether ETF applications, despite SEC statements, Chair Gary Gensler's comments and former investigations, which appeared to indicate a negative outcome. The commission began approving ETH futures-linked investment tools in October 2023 and spot Bitcoin (BTC) ETFs in January.
Published At
5/21/2024 7:04:13 PM
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