As the cryptocurrency market eagerly awaits regulatory approval for spot Ethereum ETFs, several asset managers have submitted amended filings to the SEC, indicating progress in the approval process.
Amended Filings Overview
VanEck led the charge on Monday by submitting an amended registration statement for its spot Ethereum ETF, rebranding it as The VanEck Ethereum Trust. This was quickly followed by similar submissions from 21Shares, Grayscale, Franklin Templeton, Fidelity, and BlackRock.
Grayscale’s filings included updates for its $28 billion Grayscale Ethereum Trust and a new, cost-effective “mini” equivalent. Despite these flurry of updates, none of the filings detailed planned fees, which Bloomberg ETF analyst Eric Balchunas believes the SEC has yet to request. He anticipates one more round of updates with fee details before approval, suggesting a possible decision date of July 18th.
Because the SEC asked for the S-1s on July 8th but told issuers the fee wasn't nec yet. They will give guidance back to issuers soon along with the game plan. Then the docs come will come back with fees (and every other blank) filled it and then it's Go time. https://t.co/S4u8HaMckh
— Eric Balchunas (@EricBalchunas) July 8, 2024
“If you forced me gun-to-head style to give my best guess for date, I’d go with July 18th,” Balchunas noted.
Regulatory Language and Compliance
The amendments included notable regulatory language changes. VanEck’s filing removed a section explaining how Ethereum withdrawals would be processed by its chosen custodian. This mirrors adjustments made by Bitwise last week, which emphasized SEC Chair Gary Gensler’s concerns about investor protections on crypto exchanges and the need for federal legislation on digital asset trading.
“The chair expressed a need for the SEC to have additional authorities to prevent transactions, products, and platforms from ‘falling between regulatory cracks,’” VanEck’s filing stated.
21Shares’ amended registration also included similar disclosures regarding the SEC’s regulatory stance.
“Nothing to see here,” Balchunas commented on Twitter regarding 21Shares’ filing.
21Shares now in as well. No fee tho. Nothing to see here. pic.twitter.com/5uJt9Mh5o8
— Eric Balchunas (@EricBalchunas) July 8, 2024
Grayscale’s Specific Updates
Grayscale’s “mini” ETF filing clarified that none of its Ethereum holdings would be staked. This update is in line with other applicants who have also removed Ethereum staking language from their proposals to align with regulatory expectations.
Path to Approval
Although the SEC approved several spot Ethereum ETF filings in May, the regulatory body still needs to approve S-1 forms from eight asset managers. SEC Chair Gary Gensler has emphasized that the approval process hinges on these managers’ ability to provide comprehensive disclosures.
Bloomberg ETF analyst James Seyffart has forecasted that the trading of spot Ethereum ETFs may be imminent, possibly launching within the next few weeks.
UPDATE: We've got another amended S-1 from @BitwiseInvest for their #Ethereum ETF. Expect more from other issuers throughout the rest of the week. We're thinking these things could potentially list later next week or the week of the 15th at this point. pic.twitter.com/xqVlt9lSGy
— James Seyffart (@JSeyff) July 3, 2024
Ethereum Market Impact
Despite the positive steps toward ETF approval, Ethereum’s price has not seen sustained gains. After peaking around $4,000 in late May following the SEC’s initial actions, Ethereum’s value has dropped below $3,000 amid broader market pressures.
This series of amendments and ongoing regulatory scrutiny highlight the cautious yet progressive path toward bringing spot Ethereum ETFs to the market, potentially marking a significant development in digital asset management.
