Waiting for Ethereum ETF? Analyst predicts launch delay

As a seasoned crypto investor with a keen interest in the ETF market, I’m both excited and cautious about the recent developments surrounding Ethereum [ETH] ETF approvals. The potential approval of an ETH ETF could be a significant milestone for the cryptocurrency industry, potentially leading to increased institutional adoption and liquidity. However, as James Seyffart rightly pointed out, the official launch and listing could still take some time, despite the positive updates from the SEC.

The crypto market experienced a surge at the beginning of the week due to optimistic news regarding the approval process for a US-listed ETF based on Ethereum [ETH].

As a Bloomberg ETF analyst, I’ve observed the recent SEC update regarding ETH ETF approvals with optimism. However, based on my analysis, the actual launch and listing of these ETFs might still be a prolonged process.

“We’re not quite at the point of a launch yet, but these filings confirm that the rumors, speculation, and discussions have been on the mark.”

On May 21st, the Chicago Board Options Exchange (CBOE) filed five amended 19b-4 applications on behalf of Fidelity, VanEck, Invesco/Galaxy, Ark Invest/21Shares, and Franklin Templeton. (This means that these firms have made adjustments to their proposals for exchange approval.)

While this renewed interest and update was positive, Seyffart added that,

As a researcher, I must obtain and examine the SEC approval orders for all 19b-4 filings and subsequently secure the approval orders for the corresponding S-1 filings. The process may take several weeks or even longer before the Exchange-Traded Funds (ETFs) can be launched.

Exchanges submit proposed rule modifications for new funds through Form 19b-4s, while individuals file for issuance of new offerings using Form S-1. The securities regulatory body needs to approve both types of filings prior to the launch of Exchange-Traded Funds (ETFs).

Staking feature removed from Ethereum ETF filings

As a crypto investor, I’ve noticed an intriguing development regarding Ethereum (ETH) staking in the latest amended 19b-4s filings. It seems that language related to ETH staking has been omitted, which could potentially impact the Ethereum network’s transition to a proof-of-stake consensus mechanism. This update might indicate changes in the regulatory approach towards crypto staking and could influence the broader crypto market dynamics. Stay tuned for further developments on this front.

As a researcher examining Seyffart’s findings, I can tell you that the revised filings feature more explicit language than the original staking descriptions.

‘Fund’s ETH cannot be staked by anyone.’

Many observers in the market have frequently expressed concerns that the staking mechanism could add complexity to the Ethereum approval process and potentially call its ‘security’ classification into question.

As an analyst, I’ve noticed some concerns regarding the rapid approval of Ethereum-based Exchange Traded Funds (ETFs), contrasting the decade-long journey for Bitcoin ETFs. One user expressed their skepticism, stating that such quick approval might give the impression that the market isn’t being overseen by capable regulatory figures.

The user noted that securing approval would make Ethereum similar to Bitcoin in some ways. However, they cautioned that Ethereum’s ecosystem contains numerous ‘centralized altcoins,’ which can be problematic.

Quinn Thompson, the founder of cryptocurrency hedge fund Lekker Capital, expressed his belief that increased inflows into Ethereum (ETH) exchange-traded funds (ETFs) could help ETH gain more prominence in comparison to Solana (SOL) and Bitcoin (BTC).

Thompson remarked that an ETH ETF, should it be authorized, might draw investments away from existing Bitcoin ETFs. This idea was also expressed by Peter Schiff. However, the potential impact of an approved ETH ETF on Bitcoin ETFs is yet to be determined.

2024-05-22 14:15

Staking feature removed from Ethereum ETF filings

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