Just In: VanEck Updates S1-A Filing for Spot Ethereum ETF

Investment asset management firm VanEck has taken a strategic step by submitting its S1-A form for its proposed spot Ethereum ETF.

Growing Pivot Towards Spot Ethereum ETF

According to James Seyffart, the Senior Bloomberg ETF analyst, VanEck has updated its S1-A filing for spot Ethereum ETF with the United States Securities and Exchange Commission (SEC). This step was carried out by the company in anticipation of its potential approval from the securities agency for the new offering. 

The SEC already has several applications on the waiting list for the spot Ethereum ETF offering. Following the approval of spot Bitcoin ETFs and the kind of success recorded thus far, many traditional investment firms have suddenly become interested in Ethereum ETFs. 

American multinational asset manager BlackRock also filed an Ethereum ETF application with the SEC but a decision on the offering was delayed by the regulator citing that it needed additional time to deliberate on the application to make the right decision. On this basis, it was decided that it would not give a decision on BlackRock’s iShares Ethereum Trust until March 10, 2024.

Grayscale Investments’ spot Ethereum ETF application was equally delayed by the SEC, with a similar decision pronounced on Fidelity’s filing, ARK Invest, and VanEck’s. Overall, the SEC is concerned about Ethereum’s transition to a proof of stake mechanism. The securities watchdog perceives the possibility of market manipulation and fraud stemming from the proposed ETF based on its current consensus model. 

Spot ETH ETF Approval Odds

Even with the numerous postponements, many experts believe that there is an estimated 60% likelihood of spot Ethereum ETFs receiving approval by May. This speculation stems from the fact that by May 23, the 240-day window for the SEC to make decisions on proposals from Ark/21Shares and VanEck will conclude.

Also, the crypto community considers a statement made by SEC commissioner Hester Peirce as hope for a coming approval. The SEC official acknowledged that the securities regulator would not repeat the same mistakes it made in the run-up to spot Bitcoin ETF approval. She strongly opined that the SEC has learned its lessons and will stick to it as applications for spot Ethereum ETF kept coming in.

Meanwhile, the spot Bitcoin ETF market that the agency approved in January, has seen tangible growth in this short while with Assets Under Management (AUM) already topping the $10 billion.