Six companies seeking to launch spot Ethereum exchange-traded funds (ETFs) have recently amended their filings. They did this in response to feedback from the Securities and Exchange Commission (SEC). These updates come at the final hour before potential approval.
Key Takeaways
- Six Ethereum ETF Applicants Update Filings: Six companies have amended their filings for spot Ethereum exchange-traded funds (ETFs) in response to SEC feedback.
- Removal of Staking Provisions: Fidelity, Franklin Templeton, and ARK 21Shares have removed clauses related to Ethereum proof-of-stake validation from their proposals.
- Positive Industry Response: Experts like Adam Cochran and Ryan Berckmans have applauded the removal of staking provisions.
- Revised Filings by Cboe Exchange: The Cboe exchange posted revised 19b-4 filings within a short timeframe on May 21, indicating progress toward ETF launch.
- SEC’s Influence on Staking: The SEC’s stance on staking has prompted strategic adjustments by Ethereum ETF applicants.
Spot Ethereum ETF Applicants Prepare for SEC Decision
The applicants for spot Ethereum ETFs include VanEck, Fidelity, Franklin Templeton, ARK Invest, Grayscale, and Invesco Galaxy. They have all changed their filings with the Cboe exchange, addressing concerns raised by the SEC. One notable change is the removal of provisions related to staking on the Ethereum blockchain for potential ETFs.
Removal of Staking Provisions Praised by Industry Experts
Fidelity, Franklin Templeton, and ARK 21Shares have removed clauses about validating Ethereum proof-of-stake from their proposals. In their revised filings, Fidelity emphasized that neither the Trust nor its affiliates would engage in cryptocurrency staking. Grayscale also made a similar statement. They removed staking provisions from their proxy.
Industry experts have praised the removal of staking provisions. They suggest it could benefit the Ethereum ecosystem by boosting staking returns and legitimizing Ethereum without introducing ETF-related risks.
Adam Cochran, a partner at Cinneamhain Ventures, has highlighted the potential positive impact of this strategic shift. Ryan Berckmans, an Ethereum investor, has also emphasized its benefits.
Revised Filings Posted by Cboe Exchange
The Cboe exchange published these revised 19b-4 filings within a 25-minute window on May 21, according to Bloomberg ETF analyst James Seyffart. These updates represent progress towards the ETF launch. However, the actual launch depends on SEC approval of the corresponding S-1 registration statements. Seyffart cautioned that further revisions may be necessary for the S-1 forms.
Approval for the 19b-4 forms may come as soon as Thursday. This coincides with VanEck and Cboe’s deadline. The SEC’s stance on staking has prompted strategic adjustments by Ethereum ETF applicants.
Bloomberg ETF analyst Eric Balchunas suggested that the SEC’s reluctance to permit staking in ETFs may be influenced by political factors. He highlighted the complex regulatory landscape surrounding these financial products.
Disclaimer
FAQ
The six companies updated their filings to remove provisions related to Ethereum proof-of-stake validation, addressing feedback from the SEC.
The removal was in response to the SEC's stance on staking, which prompted strategic adjustments to potentially increase the chances of approval.
The companies include VanEck, Fidelity, Franklin Templeton, ARK Invest, Grayscale, and Invesco Galaxy.
