Ethereum
Waiting for Ethereum ETF? Analyst predicts launch delay
The Ethereum ETF’s official listing and launch could take a while until the SEC approves both 19b-4s and S-1s.
- ETH ETF approval could be likely, but the official launch could take some time, per analyst.
- Mixed feelings on the potential threat of ETH ETF, if approved, to BTC ETFs.
Crypto markets rallied early in the week following a positive update on US spot Ethereum [ETH] ETF approvals.
However, according to Bloomberg ETF analyst James Seyffart, despite the positive SEC update on the ETH ETF approvals, the official launch and listing could take longer.
“Still a potentially long way from a launch. But these filings prove that all of the rumors and speculation and chatter have been accurate.”
Notably, on 21st May, the Chicago Board Options Exchange (CBOE) submitted five amended 19b-4s on behalf of Fidelity, VanEck, Invesco/Galaxy, Ark Invest/21Shares, and Franklin Templeton.
While this renewed interest and update was positive, Seyffart added that,
‘Need to actually see SEC approval orders on all the 19b-4s, AND THEN we need to see S-1 approvals. Could be weeks or more before ETFs launch.’
The 19b-4s forms are exchange rule changes submitted by exchanges for new funds, while S-1 filings are from individual issuers. Both forms must be approved before launching ETFs.
Staking feature removed from Ethereum ETF filings
Another important update on the process was the apparent removal of ETH staking wordings from the recently amended 19b-4s filings.
According to Seyffart, the amended filings replaced previous staking wordings with outright clear writing,
‘Fund’s ETH cannot be staked by anyone.’
Most market watchers have long argued that the staking feature could complicate the approval process and raise questions about ETH’s ‘security’ status.
Nevertheless, some quarters aren’t happy with the swift approval of ETH ETF, given that Bitcoin ETFs took almost 10 years to achieve. One user claimed that an ETH ETF approval will indicate that the ‘market is not regulated by competent actors.’
The user added that the approval will make ETH a Bitcoin equivalent, yet Ethereum’s ecosystem is full of ‘centralized sh*tcoins.’
On his part, Quinn Thompson, founder of crypto hedge fund Lekker Capital,
asserted that ETF inflows could help ETH come out of the shadows of Solans[SOL] and BTC.In fact, Thompson added that ETH ETF, if approved, could attract inflows from BTC ETFs. Even Peter Schiff echoed Thompson’s sentiment. If confirmed, it remains to be seen whether ETH ETF could be a threat to BTC ETFs.
