Coin World Report:
As the cryptocurrency market awaits regulatory approval for Ethereum ETFs, several asset management companies have indicated that the approval process is still underway.
On Monday, VanEck was the first to submit its amended registration statement for its spot Ethereum ETF, naming its product the VanEck Ethereum Trust. Shortly after, 21Shares also submitted a new registration for its spot Ethereum ETF.
Grayscale then followed with two amended filings of its own, one for its $28 billion Grayscale Ethereum Trust and another for a “mini” alternative intended as a low-cost substitute.
Subsequently, Franklin Templeton submitted its amended filing for its spot Ethereum ETF.
In terms of changes, VanEck’s registration statement removed some regulatory language regarding custody. A discarded section outlined how VanEck would handle Ethereum withdrawals by selecting entities to secure the fund’s assets.
Other minor changes reflect the adjustments made by Bitwise last week, which detailed the U.S. Securities and Exchange Commission’s (SEC) position on compliance in the cryptocurrency market. The section explicitly states that SEC Chairman Gary Gensler believes investors using cryptocurrency exchanges are not receiving “adequate protection” and that certain activities may involve securities laws.
VanEck’s filing states, “The Chairman has said that the SEC needs more authority to prevent trading, products, and platforms from ‘falling through regulatory cracks.’ The Chairman has called for federal legislation centered around digital asset trading.”
In its amended registration statement, 21Shares used similar disclosure language regarding the SEC’s regulatory work and other minor details.
Eric Balchunas, an ETF analyst at Bloomberg, commented on 21Shares’ application on Twitter, saying, “Not much to see here.” He added that the company has yet to disclose the fees for its potential funds.
Finally, a new section in Grayscale’s amended “mini” ETF filing explicitly states that the Ethereum in the product will not be staked, referring to the process of delegating Ethereum tokens to the network in exchange for rewards.
No previous applications before the SEC have proposed staking Ethereum. Some applicants have removed this language from their proposals prior to regulatory approval.
While the SEC approved several key applications for spot Ethereum ETFs in May, it still needs to approve the S-1 filings of eight asset management firms. Previously, Gensler stated that the approval process depends on the ability of asset management companies to provide comprehensive disclosures.
As Bitwise amended its filings last week, James Seyffart, an ETF analyst at Bloomberg, wrote that trading for Ethereum spot ETFs could arrive soon. He predicted that the launch of these products would not be too far off, either this week or next week.
Meanwhile, the price of Ethereum has nearly relinquished all the gains it saw upon the approval of such products. Following the SEC’s actions, Ethereum’s price peaked around $4,000 at the end of May and has since dropped below $3,000 amidst broader headwinds in the cryptocurrency market.
Edited by Ryan Ozawa.
