Analyst predicts launch delay for Ethereum ETF
The cryptocurrency markets witnessed a surge at the start of the week, buoyed by hopeful news surrounding the approval of Ethereum [ETH] ETFs in the United States.
Yet, Bloomberg's ETF specialist, James Seyffart, cautioned that despite the optimistic announcement from the SEC regarding ETH ETFs, the actual debut and listing might face delays.
“There’s still quite a distance to cover before we see a launch. However, these recent filings confirm that the rumors and conversations circulating were indeed grounded in truth.”
Significantly, on May 21st, the Chicago Board Options Exchange (CBOE) filed five revised 19b-4s on behalf of several firms including Fidelity, VanEck, Invesco/Galaxy, Ark Invest/21Shares, and Franklin Templeton.
Although this resurgence of interest and the developments were welcomed, Seyffart noted that,
‘We’re awaiting the actual SEC approval orders for the 19b-4s, FOLLOWED BY the S-1 approvals. It might be weeks or more until the ETFs are launched.’
The 19b-4s are forms for exchange rule changes submitted by exchanges for new products, while S-1 filings are provided by the issuers themselves. Approval is needed for both documents before ETFs can go ahead.
Ethereum ETF Filings Drop Staking Language
A critical development in the filing process was the noticeable omission of terms pertaining to ETH staking in the freshly amended 19b-4s filings.
As Seyffart highlighted, the updated filings excised prior references to staking with straightforward language,
‘The Fund’s ETH cannot be staked by anyone.’
Many observers have consistently claimed that including a staking feature could complicate the approval journey and fuel debates on whether ETH constitutes a ‘security.’
However, not everyone is pleased with the swift movement towards ETH ETF approval, especially considering that it took nearly a decade for Bitcoin ETFs to get the green light. A certain user argued that rapid approval for an ETH ETF would suggest that the ‘market is overseen by inept officials.’
This individual further argued that such approval would unjustly elevate ETH to Bitcoin’s status, despite Ethereum’s ecosystem being riddled with ‘centralized altcoins.’
Quinn Thompson, the mind behind the crypto hedge fund Lekker Capital, posited that the inflow towards an approved ETH ETF could enable ETH to emerge from the shadows of competitors like Solana [SOL] and BTC.
Thompson even suggested that an ETH ETF, upon approval, might divert funds from BTC ETFs. Echoing Thompson's view, even Peter Schiff acknowledged this potential. Should this materialize, the impact of an ETH ETF on BTC ETFs would indeed be a development to watch.
