Ethereum
Ethereum ETF: here are all the applications awaiting approval by the SEC
Following the historical approval 11 place Bitcoin Exchange Traded Funds in January, industry observers are now wondering when the U.S. Securities and Exchange Commission (SEC) might give the green light to a Ethereum equivalent.
For those who don’t know, an exchange-traded fund (ETF) is a popular investment vehicle that trades on a stock exchange. It allows investors to buy stocks that track the price of an underlying asset, which can range from gold and foreign currencies to crypto and technology stocks.
If approved, an Ethereum spot ETF – much like a Bitcoin ETF – would mean that a fund manager would take charge of buying and storing ETH digital coins and invite people to buy stocks that track their value. This would give people exposure to the second largest cryptocurrency by market capitalization.
Several high-profile financial companies have filed S-1 forms with the SEC. In short, companies file such forms to alert the regulator of their intention to offer securities to the public and to provide a detailed breakdown of their activity.
Here are the documents currently filed on the SEC desk awaiting approval. The SEC decision deadline for proposed products ranges from late May to early August.
black rock
BlackRock, the world’s largest asset manager, deposit an S-1 form for his Proposed iShares Ethereum Trust in November.
The second delayed make a decision on the fund manager’s potential product earlier this year and now has until August 7.
The company’s CEO, Larry Fink, appears to be excited about the cryptocurrency and its network. said that there is “value in having an Ethereum ETF”. He also spoke of “tokenization” as inevitable.
Shades of grey
Crypto asset manager Grayscale awaits response from SEC after deposit a proposal in October to convert its Grayscale Ethereum Trust into a spot Ethereum ETF.
The current trust currently operates as a closed-end fund; the idea is that as an ETF it would be easier for investors to redeem shares. It is Bitcoin Trust converted to an ETF in January, so there is already precedent for how such a crypto vehicle can transition to a spot ETF.
Grayscale is a big part of why Bitcoin ETFs are currently trading in the United States. In a historic moment for the crypto industry last year, a judge on the company side in a lawsuit, agreeing with the company that Wall Street’s top regulator lacked a coherent explanation for denying its Bitcoin ETF conversion proposal after years of refusal.
The decision paved the way for the SEC to greenlight the detection of Bitcoin ETFs.
Despite this, the SEC does not seem to be in a hurry to say yes to the latest approval: it pushed back on the decision in January. The regulator now has until June 18 to say yes or no.
And last month, the company deposit for a “mini” Ethereum Trust as well. The idea of the fund is to reduce costs for shareholders.
Ark Invest/21Actions
ARK Invest, Cathie Wood’s leading technology investment management firm, deposit a proposal with the SEC for an Ethereum ETF in September.
The ETF is partnered with crypto ETF issuer 21Shares and names Coinbase, America’s largest digital asset exchange, as its custodian, meaning the recognized company would hold and store the ETH in the product . The decision deadline for the product is May 24.
loyalty
Financial services giant Fidelity made it clear it wanted to abandon an Ethereum ETF in November when Cboe – the exchange where the product would trade –deposit a 19b-4 in the name of the company.
Then, in March, the major company filed its S-1 with the SEC for its Fidelity Ethereum fund. The SEC will make a decision on the product on August 3.
VanEck
Asset manager VanEck was the first fund manager to deposit a proposal for an Ethereum ETF with the SEC in 2021. Later that year withdrew his proposal and has since filed again.
The company’s Bitcoin ETF has been a successful product, and VanEck even renounced its fees to better compete with other funds on the market. On May 23, the SEC is scheduled to issue a decision on the product.
Hashdex
The Nasdaq in September deposit a proposal on behalf of Brazilian fund manager Hashdex for its Hashdex Nasdaq Ethereum ETF.
Hashdex already owns several crypto ETFs in Brazil. In the United States, its Hashdex Bitcoin ETF received the green light from the SEC in January but is not yet traded on an exchange. It announced in March that it would eventually convert its Bitcoin futures ETF to a spot ETF. The SEC will make its decision on May 30.
Franklin Templeton
Wall Street giant Franklin Templeton entered the race in February when he deposit a proposal with the SEC. Its filing for the Franklin Ethereum Trust project mentions stakingthe process of locking digital coins or tokens to operate a blockchain.
Its proposal states that it “may, from time to time, invest a portion of the assets of the Fund through one or more trusted staking providers.” The SEC will make a decision on the product on June 11.
Invesco/Digital Galaxy
Asset management giant Invesco submitted a proposal with Mike Novogratz’s Galaxy Digital for an ETH ETF in September. THE Form S-1 mentions that Invesco would be the sponsor of the product, while Galaxy Digital would work as an “execution agent” by selling ETH to pay expenses of the Invesco Galaxy Ethereum ETF.
The SEC will approve, deny or delay the product on July 7.
Bitwise
Digital asset investment company Bitwise deposit It is Form S-1 with the SEC to propose a Spot Ethereum ETF in March. Like Franklin Templeton’s filing, Bitwise also mentions staking, noting that its Bitwise Ethereum Trust can stake a portion of the fund’s assets through trusted staking providers to earn additional rewards.
Matt Hougan, chief investment officer at Bitwise, said that he expects ETH ETFs to launch in December and predicted they would be more successful anyway if approved later in the year.
Edited by Andrew Hayward