Today is a decisive date in the race for a spot in Ethereum ETF in the United States. This is because the Securities and Exchange Commission (SEC) is expected to give feedback on VanEck’s proposal.
Spot Ethereum ETF and the Staking Clause
Speculations abound on what the SEC’s decision will be. However, ahead of this verdict, prospective issuers are notably making the necessary compromise. With the US SEC not particularly a fan of Staking as a Service, most of these issuers are amending their filings to exclude this offering.
The communication between the SEC and the prospective issuers started this week. This has generally slowed the rate at which issuers amend their 19b-4s and Form S-1. Despite the odds of approval shooting above 75%, Analysts are not expecting the regulator to give a free pass to spot Ethereum ETF.
The consensus is that the prospective issuers will still have to put in the work to amend the filings to suit the SEC’s preferred demands. Just as in the case of spot Bitcoin ETFs, issuers at the time compromised on In-Kind redemption and Cash Creates. While the issuers preferred in-kind creates, the regulator sued for the Cash Creates model. The regulator’s wishes prevailed in the end.
VanEck Gearing Up for Approval
As noted, more adjustments might be required before the respective spot Ethereum ETF products are approved. Ahead of likely approval today, VanEck has listed its proposed Ethereum offering on the Depository Trust and Clearing Corporation (DTCC) website under the ticker symbol “ETHV.”
Despite this listing on the DTCC website, the ETHV asset is listed as inactive until the right regulatory approvals are secured. For other issuers, the SEC is demanding public feedback on the proposed spot Ethereum ETF offerings.
While analysts expect history to be made this week, surprises from the regulator cannot be ruled out.
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