On Monday, exchange-traded fund issuers updated their S-1 filings for Ethereum ETFs with the U.S. Securities and Exchange Commission (SEC).
VanEck was the first of the fund issuers looking to launch an Ether spot ETF to file an updated registration statement for its spot ETF. In the updated filing, the issuer revealed a new name for its investment product, which will be called “VanEck.”VanEck Ethereum Trust".
Additionally, 21Shares, BlackRock, Grayscale Investments, Franklin Templeton and Fidelity also filed amended registration statements, addressing the SEC's earlier comments, for their respective Ethereum spot ETFs.
The only updated spot ETF filing not submitted to the SEC was Invesco Galaxy's, ETF Store President Nate Geraci noted on his X account.
These amended filings bring Ethereum-based exchange-traded funds, or ETFs, ever closer to achieving listing on regulated U.S. markets.
Yesterday, Geraci highlighted that issuers were preparing to send their updated S-1 filings to the SEC and that the regulator could ask for a final round of modifications before giving the green light to these investment vehicles at the end of this week or early next week.
Ethereum ETF approval process moves forward
As reported by this outlet, SEC Chairman Gary Gensler said that ether investment funds will receive regulatory approval to be listed on US markets this summer and that the process has been going well.
While Gensler has been heavily criticized for his aggressive policy against the cryptocurrency industry, experts have pointed to the triumph achieved by Ether, the second most capitalized cryptocurrency in the market, which will soon make its debut on the US stock markets through spot ETFs.
The SEC gave the green light to these crypto investment vehicles on May 23, despite concerns over whether the ETH cryptocurrency would be classified as a security by the federal regulator.
On the other hand, none of the updated fund presentations submitted on Monday included details about their operating rates. Regarding this, Bloomberg ETF analyst Eric Balchunas commented that the SEC had not yet required the details of these fees. However, at the end of June, several of the issuers of the Ether spot ETF revealed what their funds' fees will be, such as VanEck, which will charge 0,20% and Franklin Templeton, 0,19%.
Balchunas suggested that the SEC will soon issue guidance to fund issuers to disclose their operating fees, which would lead to another round of S-1 updates.
Staking stays away
The updated filings included some minor changes, such as a new section within Grayscale Investments’ proposed “mini” ETF making clear that staking on the blockchain network will not be involved.
In fact, none of the ether funds that will be listed on the US market include ETH staking, due to regulatory pressures from the SEC. This exposes a marked difference with respect to Ethereum ETFs listed in Hong Kong and could reduce the attractiveness of these financial vehicles for investors.
Finally, the approval of the S-1 filings from the eight fund issuers is key for the Ether spot ETFs to begin trading. Bloomberg ETF analyst James Seyffart also believes that this approval could happen imminently this week or early next week.
Meanwhile, the price of Ethereum has seen a significant drop, trading above $3.000 per unit at press time. In the past week, the price of this cryptocurrency has corrected by 11%.
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