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VanEck Ethereum ETF Gets Green Light, Who Else is In Line? 

Last Updated May 24, 2024 10:25 AM
Shraddha Sharma
Last Updated May 24, 2024 10:25 AM

Key Takeaways

  • The SEC approved Form 19b-4 of VanEck and seven other Ethereum ETF issuers.
  • VanEck submitted an amended S-1 application form on May 23.
  • VanEck posted a 37-second advertisement on X shortly after the approval.

The Securities and Exchange Commission (SEC) has given its approval to VanEck Ethereum ETF alongside 7 other issuers. The approved Form 19b-4 includes VanEck, BlackRock, Fidelity, Grayscale, Bitwise, Ark, Invesco Galaxy, and Franklin Templeton.

VanEck’s much-anticipated spot Ethereum ETF was listed on the DTCC website on May 21. However, trading can still be weeks away.

VanEck Received Approval

The SEC has approved Form 19b-4 for eight Ethereum ETF issuers including VanEck. Other issuers include names like BlackRock, Grayscale, and Fidelity.

VanEck wasted no time following the SEC’s approval and reportedly submitted an amended S-1 application form for its Ethereum spot ETF.

This was a crucial step for VanEck, signaling their intent to be at the forefront of the Ethereum ETF market.

Within minutes of the SEC’s decision, VanEck also posted a 37-second advertisement on X, inviting viewers to “Enter the ether.” This advertisement is part of their broader strategy to attract investors and build awareness about their upcoming ETF.

The anticipation surrounding VanEck’s Ethereum ETF reached a peak when it was listed on the Depository Trust & Clearing Corporation (DTCC) website on May 21. The listing is a crucial step towards making the ETF available for trading. The DTCC is a significant player in the financial market infrastructure, providing post-trade clearance and settlement services.

Matthew Sigel, head of digital asset research at VanEck, noted that the SEC has approved their exchange partner CBOE’s proposed rule change to list and trade a VanEck spot Ethereum ETF on the CBOE.

He emphasized that it recognizes Ethereum as a decentralized commodity, not a security. This approval is backed by the high correlation between ETH spot prices and CME Ethereum futures prices, which supports the SEC’s market surveillance requirements, the researcher noted.

Trading Can Take Weeks

Bloomberg analyst James Seyffart highlighted that the approval came via delegated authority. This means that the decision was made by the SEC staff rather than the commissioners themselves.

He explained  that while this is a common practice, it still leaves room for any commissioner to request a review or vote on the decision.

Seyffart noted, “I say “it wouldn’t change anything” because the SEC commissioners would not have allowed Trading and Markets division to write/issue this approval order via delegated authority unless a plurality of the commissioners agreed on that decision.”

Seyffart also pointed out that delegated authority is the norm for such decisions.

According  to  Fox Business, Commissioner Crenshaw is currently on maternity leave, which may have influenced the decision to use delegated authority.

What’s Next for Ethereum ETFs?

While the approval of Form 19b-4 is a major step, it does not mean that Ethereum ETFs will begin trading immediately.

According to Bloomberg, the SEC still needs to approve the S-1 documents submitted by the issuers. Analysts expect the process to take several weeks or even months, depending on various factors.

Seyffart noted that the approval process for Bitcoin ETFs took at least 90 days, and he expects a somewhat accelerated timeline for Ethereum ETFs. However, it’s essential to understand that full trading approval has not yet been granted.

Ethereum ETFs After Bitcoin ETFs

The SEC’s approval of Form 19b-4 for eight Ethereum ETF issuers is a major step in the integration of Ethereum into mainstream finance. VanEck has quickly followed up with an amended S-1 application and a targeted advertisement campaign.

Experts say that there are still several steps to be completed before Ethereum ETFs begin trading, but the progress made so far is promising with at least 8 players on the list.

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