The race for the first Ethereum exchange-traded fund (ETF) in the United States is officially underway. The Chicago Board Options Exchange (CBOE) has recently filed two 19b-4 applications with the U.S. Securities and Exchange Commission (SEC), requesting the listing of the ARK 21Shares Ethereum ETF and the VanEck Ethereum ETF on CBOE’s BZX Exchange.
Unlike previously submitted S-1 filings, the 19b-4 filings mark the beginning of the countdown for an SEC decision. Bloomberg ETF analyst James Seyffart estimates a final deadline for the decision to be around May 23, 2024. A 19b-4 form is filed by self-regulatory organizations, such as stock exchanges, to request a rule change to the SEC. On the other hand, an S-1 filing only indicates a firm’s intention to list a particular investment product on a national exchange.
While the SEC is now obligated to review the 19b-4 filings and make a decision, similar to the ongoing delays for spot Bitcoin ETFs, the SEC can also choose to delay the decision. Previously, ARK Invest and 21Shares have teamed up to file an S-1 to the SEC, and VanEck submitted its S-1 filing as far back as July 2021. Seyffart expects more spot Ethereum ETF filings to come in the coming days.
This development comes after the SEC’s reported intention to approve Ethereum Futures investment products on August 17. Several firms, including Grayscale Investments and BlackRock, are currently vying to get approval for a spot Bitcoin ETF.
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The introduction of Ethereum ETFs in the United States would provide investors with a regulated and accessible way to gain exposure to the popular cryptocurrency. ETFs are investment vehicles that trade on stock exchanges, mirroring the performance of an underlying asset, in this case, Ethereum. They offer advantages such as liquidity, transparency, and convenience for investors, as they can be bought and sold like stocks.
The approval of an Ethereum ETF could have significant implications for the cryptocurrency market. It would widen the accessibility of Ethereum to a broader range of investors, including institutional and retail investors. Additionally, it could provide further legitimacy to the cryptocurrency space and potentially attract more investment.
The race for the first Ethereum ETF in the United States reflects the growing demand for cryptocurrencies and their increasing acceptance in traditional finance circles. As more investors seek exposure to digital assets, the SEC’s decision regarding these filings will be closely watched.
In addition to Ethereum ETFs, there are also applications pending for Ethereum futures ETFs. Grayscale Investments and VanEck, among others, have filed SEC applications for these investment products. The approval of Ethereum futures ETFs would enable investors to gain exposure to the price movements of Ethereum futures contracts, further expanding the investment options in the cryptocurrency market.
As the race for the first Ethereum ETF unfolds, it remains to be seen how the SEC will decide and the potential impact it will have on the broader cryptocurrency market. The approval of these ETFs could mark a significant milestone in the adoption and integration of cryptocurrencies into traditional financial systems. It would provide investors with more regulated and accessible avenues to invest in Ethereum, potentially leading to increased liquidity and stability in the market.
Overall, the filing of 19b-4 applications by the CBOE for Ethereum ETFs marks the official start of the race for the first Ethereum ETF in the United States. The decision by the SEC will have far-reaching implications for the cryptocurrency market and could pave the way for further integration of digital assets into traditional finance. Investors and market participants will be eagerly awaiting the SEC’s decision and its potential impact on the industry.
