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In an exciting twist for the cryptocurrency market, Bloomberg ETF analyst James Seyffart has highlighted a significant move towards the launch of Ethereum (ETH) Exchange-Traded Funds (ETFs). On May 22, Seyffart shared that amendments to Form 19b-4 had been filed by at least five organizations aspiring to issue Ethereum ETFs. These submissions were facilitated through the Chicago Board Options Exchange (CBOE) by notable financial entities including Fidelity, VanEck, Invesco Galaxy, Ark 21Shares, and Franklin. This step marks a critical juncture in bringing Ethereum closer to the mainstream investment world.
Grayscale was also reported to have updated their 19b-4 filing for an Ethereum Mini Trust, aligning with the flurry of amendments submitted. This collective action follows an SEC advisory that called for the revised forms by May 21. The SEC uses Form 19b-4 to evaluate proposed changes in rules or the introduction of new products by ETF issuers and exchanges, specifically spot Ethereum ETPs in this context. Despite the industry’s eagerness, Seyffart cautioned that even after these filings, the road to actual ETF launches remains a long one, requiring further approvals from the SEC.
The major amendments in these filings predominantly included the removal of references to Ethereum staking, a feature the SEC had previously vetoed for these financial products. The regulator’s stance stems from its current classification of Ether as a security, which impacts the potential for ETFs to offer staking-derived returns. Moreover, the first critical deadline set by the SEC for the approval or denial of the VanEck spot Ethereum ETF falls on May 23, emblematic of the tight timeline and high stakes involved in the approval process. Seyffart, maintaining an optimistic outlook, has pegged the approval odds at 75% following a recent upgrade from an initial 25%.
Simultaneously, the broader cryptocurrency market, notably Ethereum, has responded positively with prices surging in anticipation of these developments. Ether’s price notably topped $3,800 on May 21, holding strong at $3,750 amid these unfolding events. This represents a significant jump of 31% over the past week, highlighting the market’s bullish outlook on the potential approval of Ethereum ETFs. Nevertheless, Bitcoin’s performance seemed unaffected by these developments, indicating a more isolated market reaction focused on Ethereum’s ETF prospects. These steps toward Ethereum ETFs not only underscore the growing integration of cryptocurrency into traditional investment channels but also highlight the regulatory and market dynamics shaping this transition.
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