Five Ethereum (ETH) spot ETF applicants have submitted their Amended 19b-4 forms to the U.S. Securities and Exchange Commission (SEC), signaling a key step in the regulatory process.
Key Players and Submissions
According to Bloomberg Intelligence analyst James Seyffart, the five applicants—Fidelity, VanEck, Invesco/Galaxy, Ark Invest, and Franklin Templeton—submitted their forms just 25 minutes before the deadline. These 19b-4 forms notify the SEC of proposed rule changes, essential for the approval process of new financial products.
Focus on ETH Staking Exclusion
The submissions notably excluded ETH staking from the proposed ETFs. As anticipated by industry experts, neither the issuers nor users will be able to engage in direct or indirect Ethereum staking activities through these ETFs. This move aligns with regulatory expectations and aims to streamline the approval process.
SEC’s Stance on Staked ETH
Alex Thorn, Head of Firmwide Research at Galaxy Digital, mentioned that the SEC might classify staked ETH as a security as part of its broader regulatory framework. This could facilitate the approval of the ETFs while maintaining the SEC’s regulatory stance on staking activities.
Approval Odds and Timeline
Despite the submission of the 19b-4 forms, Seyffart noted that the odds of approval for these ETH ETFs remain at 75%. The launch of these spot ETH ETFs in the U.S. could still take “weeks or more,” indicating a gradual and thorough review process by the SEC.
Market Impact and Predictions
Analysts from QCP Capital, a Singapore-based trading firm, speculate that the approval of spot Ethereum ETFs could propel ETH’s price above the $5,000 mark. This potential approval has already generated significant market interest and anticipation.
Conclusion
The submission of the 19b-4 forms by these prominent financial institutions marks a crucial step towards the possible approval of Ethereum spot ETFs. While the process may take some time, the financial and crypto markets are closely watching for the SEC’s decision, which could have substantial implications for ETH’s price and the broader cryptocurrency ecosystem.
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