Top asset managers have updated Spot Ethereum ETFs.

Major asset management firms have filed a 19b-4 filing with the Securities and Exchange Commission (SEC) for spot Ethereum ETFs. BlackRock, Grayscale and BitWise joined the ranks of Fidelity, ARK 21Shares, Invesco Galaxy, VanEck and Franklin Templeton which made similar improvements.

The move comes amid heightened regulatory scrutiny over the crypto industry and represents a strategic shift to comply with SEC concerns.

Asset managers adjust Spot Ethereum ETF strategies

In a May 22 listing from the Nasdaq stock market, asset management firm BlackRock revised its position on the Ethereum ETF 19b-4 to exclude stock offerings. Grayscale and BitWise have submitted similar updates to New York Stock Exchange (NYSE) Arca.

“The Trust or the Sponsor or the Ether Custodian or any person affiliated with the Trust shall not, directly or indirectly, act in any way in which any ETH Unit of the Trust is subject to, or subject to, any proof of Ethereum Shares. It will be used to earn more Ether or earn income or other income,” the amended section reads on all three records.

Read more: Ethereum ETF explained: what it is and how it works

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, who commented on the asset managers' reform process, said these steps clarified the SEC's position on putting Ethereum ETFs in place.

“It looks like you've got a final answer as to whether the SEC will allow the filing. No, because this is the first amendment to any document to be filed in a post-SEC 180, and it's your opinion to the issuers,” Balchunas said.

The crypto community sees the approval of the Space Ethereum ETF as a bullish sentiment for the broader market. However, approving these ETFs could hurt investors interested in getting more yield from rewards.

Those who buy, hold, and own ETH have the potential to earn higher rewards, resulting in more production. Therefore, avoiding the critical aspect, spot Ethereum ETFs cannot provide additional benefits to investors.

Meanwhile, many industry experts believe that political considerations in the upcoming US presidential election in November may influence the approval of Ethereum EFS. Some see this sudden change as “political”, citing former US President Donald Trump's move to support the crypto industry.

“I think this decision was made at the top, probably above the head of the SEC, like Biden, the Biden administration decided it wasn't worth fighting this. If we try to do this and someone sues us and we're losing votes, we could lose in court, people are going to Trump just because of his position here, and that's not worth it, Seifert explained.

In fact, Presidents Biden and Trump have taken opposing positions on the crypto industry. While the Biden administration has maintained a stricter approach, Trump has publicly expressed his discomfort. BeinCrypto previously reported that Trump had launched a fundraising page to receive campaign donations, including bitcoin and ethereum.

Read more: How to invest in Ethereum ETFs?

Investors and market watchers will closely monitor the SEC's decisions and their implications for the crypto market. As the industry evolves, the balance between regulatory compliance and investor returns is critical.