Spot Ethereum ETF: SEC Chair Says Approval Is Going Smoothly

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SEC Chair Says Approval Is Going Smoothly – Crypto News

Published

2 years ago

June 26, 2024

Dripp

Spot Ethereum ETF trading could go live anytime from now considering Gary Gensler‘s latest statement about the process.

SEC Working on Spot Ethereum ETF Trading Approvals

Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC) reportedly said the process to spot Ethereum ETF trading approval is going smoothly.

While this statement may not mean much, especially after Gensler mentioned that the approval may come during summer, it suggests that the Commission is proactively looking into the filings from applicants.

It has been more than one month since the securities regulator approved eight multiple-spot Ethereum ETFs.

Precisely, the SEC approved the 19b-4 filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. Despite the approvals, trading could not begin. Issuers are still expected to amend their S-1 registration statements and receive approval from the SEC.

S-1 Amendments from Issuers Received

As it stands, the U.S. regulator has received S-1 amendments from all eight spot Ethereum ETF filers. In this amended filing, there is more information about sponsor fees and seed investments. Bitwise and Fidelity are two of the first institutions to file their S-1 amendments.

When Fidelity submitted its updated filing, Bloomberg’s Senior ETF Analyst Eric Balchunas spotted one major omission in Fidelity’s filing. The financial institution failed to include a sponsor fee.

Similarly, Balchunas noted that the filings from Bitwise and BlackRock did not also include fees in what many might construe as a trend. So far, only Franklin Templeton and VanEck have revealed their sponsor fees at 0.19% and 0.20% respectively.

In another step further, VanEck just filed the 8-A Form for its spot Ethereum ETF product in hopes of S-1 approvals. The 8-A form is part of the process leading to the launch of any ETF product and it marks the progress towards the potential approval of a spot ETH ETF.

Analysts and experts are still optimistic that the approval will come in the first week of July. Bitwise CEO Hunter Horsley noted that spot Ethereum ETF trading will likely launch before July 4. The next few days will determine how much more crypto enthusiasts have to wait before the proposed rule change goes live.

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