U.S. Asset Managers Amend Spot Ether ETF Applications Ahead of SEC Decision
Three U.S.-based asset managers have amended their spot Ether exchange-traded fund (ETF) applications with the Securities and Exchange Commission (SEC), removing provisions for staking.
This move is seen as a step towards gaining SEC approval for listing and trading these ETFs on exchanges.
On May 22, BlackRock submitted an amendment to its spot Ether ETF 19b-4 application through the Nasdaq Stock Market, specifically excluding staking activities. Grayscale and Bitwise made similar amendments through the New York Stock Exchange Arca.
The amended BlackRock filing stated, “Neither the Trust, nor the Sponsor, nor the Ether Custodian […] nor any other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust’s ETH becomes subject to the Ethereum proof-of-stake validation or is used to earn additional ETH or generate income or other earnings.”
Similar amendments were also reflected in the applications from Fidelity, VanEck, Franklin Templeton, Invesco Galaxy, and ARK 21Shares as of May 21.
The SEC is expected to make a decision on these applications by May 23, particularly for VanEck’s ETF, which is under the ticker symbol ETHV according to the Depository Trust and Clearing Corporation.
The decision by the SEC is being closely watched as it coincides with broader discussions in Congress about defining the regulator’s role in digital asset regulation. Lawmakers in the House of Representatives are currently debating the Financial Innovation and Technology for the 21st Century Act.
The outcome of these discussions and the SEC’s impending decision will be critical for the future of spot Ether ETFs, potentially following the path of spot Bitcoin investment vehicles, which received approval in January.
Nonetheless, it is worth noting that according to ConsenSys CEO Joseph Lubin, early-stage applications to launch Ethereum ETFs in the United States are “almost complete.”
Speaking at DappCon in Berlin, Lubin mentioned that several 19b-4 applications filed by firms like BlackRock are expected to be approved by the SEC. However, the public launch of these ETFs could be delayed.
Lubin also emphasized that the SEC is now under strong pressure to adopt a more neutral stance as the U.S. presidential elections approach. He noted that the potential approval of Ether ETFs could “hopefully” turn the SEC into a “thoughtful regulator.”
