US Asset Managers Alter Ether ETF Applications: SEC Decision Awaited Amid Regulatory Debates
Summary:
Three US-based asset management firms, BlackRock, Grayscale, and Bitwise, have amended their pending applications for Ether exchange-traded funds with the Securities and Exchange Commission to exclude staking. The SEC is expected to decide on the listing and trading approvals by May 23. This comes as Congress discusses the Financial Innovation and Technology for the 21st Century Act, a possible legislation to clarify the SEC's role in regulating digital assets.
Three more US-based asset management companies with pending applications for Ether (ETH) exchange-traded funds (ETFs) have altered their 19b-4 submissions to the Securities and Exchange Commission (SEC). On May 22, BlackRock, a leading asset management company, amended its application for a spot Ether ETF by eliminating staking plans. Concurrently, Grayscale and Bitwise submitted similar modifications to the New York Stock Exchange Arca. With the SEC's approval of the 19b-4 submissions, listing and trading of spot Ether ETFs can proceed on exchanges.
BlackRock's revised filing stated that neither the Trust, Sponsor, Ether Custodian, or anyone linked to the Trust would directly or indirectly participate in activities involving Ethereum proof-of-stake validation or use any of the Trust's ETH for amassing more ETH or generating income or other earnings.
On May 21, Fidelity, VanEck, Franklin Templeton, Invesco Galaxy, and ARK 21Shares submitted similarly revised applications, removing staking propositions. It is anticipated that the SEC will make a decision regarding listing and trading approvals or disapprovals by May 23 - the final deadline for VanEck's application.
The SEC's impending decision has stirred debates among crypto enthusiasts regarding legislative measures being contemplated by Congress to clarify the SEC's jurisdiction over digital asset regulation. Presently, legislators in the House of Representatives are discussing the Financial Innovation and Technology for the 21st Century Act before it is put to vote.
The Depository Trust and Clearing Corporation has listed VanEck's Ether ETF under the ticker symbol ETHV - an encouraging yet uncertain indication that the asset management company is bracing for SEC approval. However, whether the SEC will endorse spot Ether ETFs as it did for spot Bitcoin investment vehicles in January remains uncertain.
Published At
5/23/2024 12:36:05 AM
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