‘It’s Happening’ – 5 Ethereum ETF Bidders Update SEC Filings
Five potential ether (ETH) exchange-traded fund (ETF) issuers have filed revised 19b-4 filings after receiving a last-minute comment from the Securities and Exchange Commission.
Multiple filings show changes to asset managers Fidelity, VanEck and Franklin Templeton with Galaxy and Invesco, and joint applications from ARK Invest and 21Shares.
The updates saw Fidelity, Franklin Templeton and ARK 21Shares withdraw their offer for ETH shares.
“The Trust or the Sponsor or Custodian or any other person associated with the Trust will not, directly or indirectly, act when any ETH portion of the Trust is subject to Ethereum Stake Proof. It is used to obtain additional ETH or to generate revenue or other income;” Fidelity's amended 19b-4 filing read.
Another Chicago Board Options Exchange (CBOE)-backed filing used similar language.
According to the proxy statement, grayscale stole the overlay.
However, Adam Cochran, a partner at the venture capital firm CinemaHine Ventures, says that an approved space ether ETF can generate income without a stock membership.
Ryan Berkmans, Ethereum community member and investor, added, “Etfs provide the same critical boost to Ethereum legitimacy without leverage by removing tail risk from ETFs and reducing yields.
All five CBOE records came in the 25 minutes between 9:35 pm and 10:00 pm UTC on May 21, according to Bloomberg ETF analyst James Seifert.
Approved 19b-4 filings must be accompanied by signed S-1 registration statements to initiate EFAs, Seifert said.
“Still a long way from the beginning. But these documents prove that all the rumors and speculations and chatter are correct.
The SEC has until May 23 to decide on VanEck's application, but industry experts say the regulator will decide in January how to treat Bitcoin (BTC) ETFs in a similar manner to all or most of the applicants.
Related: Spot Ether ETFs Go Down to 5-Man Vote – Gensler the Ruler?
Fox Business reporter Eleanor Terrett said VanEck's Ether ETF auction has been added to the Depository Trust and Clearing Corporation's (DTCC) website.
DTCC's website often lists securities eligible for trading and settlement in its systems, including ETFs that have completed special registration or compliance procedures. However, it is not an indication that it will be approved by the SEC.
BlackRock and Hashdex are the Ether ETF applicants competing for SEC approval.
This comes as the SEC began asking them to expedite their 19b-4 filings on May 20.
The sudden change, Seifert and Bloomberg ETF analyst Eric Balchunas increased their position from 25% to 75% Ether ETF.
According to CoinGecko, ETH is up 20.6% to about $3,800.
Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have Final Comments?
