VanEck, a wealth manager, recently submitted an updated S-1 registration statement to the SEC for its proposed Ethereum ETF that would track spot prices. This filing was made before the deadline set by the securities regulator for all issuers to provide amended documents. The move by VanEck follows a similar filing by Bitwise on July 3, with other firms expected to follow suit by the end of the day.
According to a Bloomberg analyst, VanEck’s filing contained minimal changes and was seen as a procedural step to comply with regulations. Both VanEck and Bitwise have already disclosed details about their respective spot Ethereum ETFs, including an initial fee waiver.
The next step for these spot Ether ETFs is to receive approval from the SEC for the proposed rule changes in 19b-4 forms and S-1s, which would allow the ETF shares to be listed on authorized national exchanges. In May, the SEC approved eight 19b-4 forms from potential spot ETH ETF issuers, signaling progress towards the launch of these investment vehicles.
It is anticipated that trading for spot Ethereum ETFs could begin as early as next week, following remarks from SEC chair Gary Gensler indicating a possible summer launch. The approval and subsequent launch of spot Bitcoin ETFs earlier this year resulted in a significant price increase for Bitcoin, leading to a 33% year-to-date growth despite recent market fluctuations.
As the launch of spot ETH ETFs approaches, there are differing opinions on how it will impact the price of Ethereum. Some, like Flipside Crypto data scientist Carlos Mercado, believe that an institutional wrapper could have negative consequences for DeFi’s largest currency after Bitcoin. On the other hand, SCRYPT CEO Norman Wooding predicts that institutional demand will drive higher yields and ultimately increase prices for ETH in the long term.
In the past month, Ethereum has experienced an 18% decrease in value due to broader market trends. However, with the potential launch of spot ETH ETFs on the horizon, there is speculation that the price of Ethereum could follow a similar trajectory to Bitcoin after the introduction of ETFs. Investors and analysts will be closely monitoring the developments in the crypto market as the launch of these investment products draws near.