Five asset managers have revised their spot Ether exchange-traded fund (ETF) applications in response to last-minute guidance from the US Securities and Exchange Commission (SEC), fueling optimism about potential approval.
Among the firms making these amendments are Fidelity, VanEck, and Franklin Templeton, as well as joint applicants Galaxy and Invesco, and ARK Invest and 21Shares.
A major change in the revised filings is the removal of provisions for Ether staking, aligning the applications with SEC requirements.
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Fidelity's amended filing stated:
Neither the Trust, nor the Sponsor, nor the Custodian, nor any other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust’s ETH becomes subject to the Ethereum Proof-of-Stake validation or is used to earn additional ETH or generate income or other earnings.
Similar language was adopted by the other Chicago Board Options Exchange (CBOE)-sponsored applicants.
Industry experts see this development as a positive signal. Bloomberg analyst Eric Balchunas has raised the approval odds for spot Ether ETFs from 25% to 75%.
Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, mentioned that ETFs without staking could actually enhance staking returns by avoiding associated risks.
Furthermore, Bloomberg ETF analyst James Seyffart highlighted the urgency of these updates, noting that all five CBOE filings occurred within a short 25-minute window on May 21. He also pointed out that these amendments are a step forward but reiterated that the launch of these ETFs is still contingent on the approval of S-1 registration statements by the SEC.
VanEck's application is one of the first to face the SEC's decision, with a deadline set for May 23. However, many believe that the SEC will likely make a collective decision on all applicants, similar to its approach with spot Bitcoin ETFs earlier this year.
VanEck’s Ether ETF, marked as "ETHV," was added to the Depository Trust and Clearing Corporation (DTCC) website, even though it is not yet active. The DTCC lists securities eligible for trading and settlement within its systems, including both active and pre-launch ETFs.
Banking giant Standard Chartered’s optimistic forecast further fuels market enthusiasm, predicting that Ethereum's price could soar to $8,000 by the end of the year. The recent SEC directives and the filing updates have already led to an increase in ETH value, trading at $3,757.18 at the time of writing.
While the path to the launch of spot Ether ETFs remains uncertain, the recent flurry of amended filings and the SEC's engagement with applicants indicate a potentially positive outcome.
