Asset Manager Fidelity’s Amended S-1 Application for Ether ETF
Asset manager Fidelity has submitted an amended S-1 application to the United States Securities and Exchange Commission (SEC) for its spot Ether exchange-traded fund (ETF). This updated application specifies that the underlying Ether tokens of the ETF will not be staked, according to recent reports.
SEC Might Greenlight Ether ETFs
In light of reports suggesting a change in the SEC’s stance on spot Ether ETFs, influenced possibly by political pressures, Fidelity’s filing comes at a crucial time. The SEC has reportedly requested ETF issuers to revise their 19b-4 filings, with a deadline for the decision on VanEck’s Ether ETF proposal set for May 23.
Bloomberg ETF analyst Eric Balchunas has raised the likelihood of approval to 75%, emphasizing the importance of both 19b-4 and S-1 filings for Ether ETF issuers. Despite potential delays in the approval process, analysts like James Seyffart believe that S-1 approvals are inevitable.
Liquidity Concerns and Approval Timelines
Concerns over the liquidity of ETH’s spot and futures markets, combined with its past classification as a security by the SEC, contribute to skepticism regarding swift approval. If rejected, issuers may need to resubmit filings, potentially delaying approval to Q4 2024 or Q1 2025.
Another scenario involves the approval of 19b-4 filings while taking a cautious approach with the S-1s. Both filings are crucial for the launch of Spot ETH ETFs, with national security exchanges like NYSE and Nasdaq waiting for the green light to list these new products.
Despite active dialogue between fund companies and the SEC, there has been less public activity for spot Ethereum ETF filings, leading to expectations of a possible disapproval order. The lack of visible progress has raised concerns among industry insiders.
“Most people are universally expecting a disapproval order,” commented Katherine Dowling, general counsel for Bitwise, reflecting the sentiment within the industry.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
