Key Points
- The US SEC’s positive update on Ethereum ETF approvals has stirred the crypto market, yet an official launch may still be distant.
- The approval of an Ethereum ETF could potentially pose a threat to Bitcoin ETFs.
The crypto market experienced a surge earlier this week following the US Securities and Exchange Commission’s (SEC) encouraging update on the approval of Ethereum [ETH] ETFs.
Ethereum ETF Approval: A Long Road Ahead?
Despite this positive news, Bloomberg ETF analyst James Seyffart suggests that the official launch and listing could take some time. Seyffart stated, “Still a potentially long way from a launch. But these filings prove that all of the rumors and speculation and chatter have been accurate.”
On May 21st, the Chicago Board Options Exchange (CBOE) submitted five amended 19b-4s on behalf of Fidelity, VanEck, Invesco/Galaxy, Ark Invest/21Shares, and Franklin Templeton. Seyffart noted that the SEC needs to approve all the 19b-4s and S-1 approvals before the ETFs can launch.
Changes in the ETF Approval Process
Another significant update in the process was the removal of ETH staking wording from the recently amended 19b-4s filings. Seyffart mentioned that the amended filings replaced previous staking wordings with a clear statement: “Fund’s ETH cannot be staked by anyone.” This change has been seen as a response to concerns that the staking feature could complicate the approval process and raise questions about ETH’s ‘security’ status.
However, not everyone is pleased with the swift approval of the ETH ETF, considering that Bitcoin ETFs took almost a decade to achieve. Critics argue that an ETH ETF approval would imply that the market is not regulated by competent actors and make ETH equivalent to Bitcoin, despite Ethereum’s ecosystem being full of ‘centralized sh*tcoins.’
Quinn Thompson, founder of crypto hedge fund Lekker Capital, believes that ETF inflows could help ETH step out of the shadows of Solans[SOL] and Bitcoin. Thompson suggested that an approved ETH ETF could attract inflows from Bitcoin ETFs. This sentiment was also shared by Peter Schiff. If this prediction is confirmed, it remains to be seen whether an ETH ETF could indeed pose a threat to Bitcoin ETFs.
