ETH ETF soon? Asset managers upgrade Spot Ethereum ETFs, eliminating staking provisions

In a significant development for the cryptocurrency market, asset management firms BlackRock, BitWise, and Grayscale have filed updated 19b-4 filings with the Securities and Exchange Commission (SEC) for their Ethereum (ETH) exchange-traded fund (ETF) applications.

The amended filings, filed May 22, remove the share provisions, a move consistent with similar amendments filed May 21 by fellow issuers Fidelity, VanEck, Franklin Templeton, Invesco Galaxy and ARK 21Shares.

TLDR

BlackRock, Bitwise and Grayscale have filed amended 19b-4 filings with the SEC for their position Ethereum ETFs, removing the stock provisions. Fidelity, VanEck, Franklin Templeton, Invesco Galaxy and ARK 21Shares also updated their filings to remove stock offerings. The SEC regulator is expected to decide on May 23 whether to approve or deny the listing and trading of Ethereum ETFs when VanEck's application deadline is reached. The SEC has begun discussions with issuers on their S-1 filings, saying it could be days to weeks before approval. The SEC published a filing requesting public comment on several potential areas, citing investor protection issues as a key issue.

The revised filing comes less than 24 hours before the SEC's deadline to decide on VanEck's spot Ethereum ETF application.

The regulator is expected to approve or deny the listing and trading of Ethereum ETFs by May 23. 19b-4 filings are critical, as national exchanges such as NASDAQ or the New York Stock Exchange (NYSE) seek permission from the SEC to list new products on their trading platforms.

BlackRock's updated filing with the Nasdaq Stock Exchange says.

“Not a trust, or a sponsor, or a custodian of the ether. […] Nor shall any person affiliated with the Trust act, directly or indirectly, when any portion of the Trust's ETH is subject to Ethereum's share verification, or when it is used to obtain additional ETH or earn income or other income.

This change in position on staking provisions is reflected in the amendments made by Grayscale and Bitwise to NYSE Arca.

While the focus is on 19b-4 filings, the SEC has also begun discussions on S-1 filings with issuers that outline how funds are managed and the value of their assets tracked.

According to Fox Business's Eleanor Terrett, SEC staff have concluded that there is work to be done on S-1 filings. Bloomberg analyst James Seifert notes that S-1 approval is a matter of “when,” not “if,” but it could take days to weeks before the SEC approves it.

The crypto community is eagerly awaiting the SEC's decision, with many speculating that the agency's latest change of heart may be influenced by political considerations, perhaps even from the highest levels of the US government.

The approval of spot Ethereum ETFs marks a major regulatory change and could prove the crypto community is a legitimate voting block.

Ethereum bulls seem to be anticipating strength for SEC approval as the deadline approaches.

The $3,618 level serves as support for a short-term downside move, and ETH Liquidity data confirms that the bulls may be declining.

If the SEC approves the position of Ethereum ETFs, analysts predict that Ethereum could rise more than 30%. .