Cboe Files Amended ETH ETF Filings Amid Renewed Approval Potential
Cboe BZX filed a 19-b4 amendment involving five Ethereum ETFs on May 21, significantly increasing each fund’s chances of approval.
The news coincided with a sudden spike in odds for Polymarket, which reported a 70% chance of approval by May 31. This is up from 10% just a few hours ago.
Bloomberg ETF analyst James Seyffart I left a comment. Regarding the development, the filing said it corroborates previous rumors and speculations.
He acknowledged that each applicant is “still a long way from market” because the SEC still has to issue an approval order for the 19b-4 filing and S-1 registration statement. Therefore, each fund may not be released for “a few weeks or more,” according to Seyffart.
Yesterday, Seyffart and his colleague Eric Balchunas raised the odds of approval to 75%, with sources reporting impending revisions. Others, including FOX Business reporter Eleanor Terret, backed up the report based on their own sources.
5 funds in operation
The Cboe BZX amendment concerns proposals from Fidelity, VanEck, Invesco and Galaxy, Ark Invest and 21 Shares, Franklin Templeton.
The latest amendments do not include all pending applications. Grayscale each aims to convert the Ethereum Trust (ETHE) into a spot ETF on NYSE Arca, while BlackRock and Hashdex each plan to launch spot Ethereum ETFs on Nasdaq.
The SEC must decide on VanEck’s spot ETH ETF on May 23rd. However, later deadlines may result in multiple similar proposals being approved simultaneously.
Staking not possible
The amendments also explain important aspects of each ETH ETF. Each document states that trusts, funds, sponsors, custodians and other parties will not participate in Ethereum staking.
Some applicants previously proposed staking but subsequently eliminated the possibility in their S-1 statements.
The filing also confirmed that each fund will use cash generation and redemptions. In contrast, in-kind creation and redemption allows some participants to transact with cryptocurrencies. This possibility was raised but withdrawn amid the approval of a spot Bitcoin ETF.
Both factors are expected to influence the SEC’s decision on the ETH ETF.
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