• Grayscale has filed their S3 prospectus to convert their Ethereum Trust to an Ether ETF.
  • BlackRock has filed an amendment to their 19b-4 ETH ETF application.
  • Experts anticipate approval by May 23 despite expected delay in Grayscale and Franklin Templeton applications.

Ethereum exchange-traded funds (ETFs) theme gained steam after the landmark approval of multiple BTC ETFs in January. However, the campaign for approval of this investment alternative continues, with evidence of ongoing back and forth between prospective issuers and the US Securities and Exchange Commission (SEC).

Also Read: Ethereum Foundation subpoena threatens ETH ETF approval odds

Grayscale files S3 prospectus

The US SEC delayed a decision in the filings by American digital currency asset management company Grayscale as well as that of globally renowned holding company Franklin Templeton. However, this has not derailed Grayscale from the fight, as reports indicate it has filed its S3 prospectus to have its Ethereum Trust (ETHE) converted to a spot ETH ETF.

An S-3 prospectus allows ETF issuers to register additional securities or create new ETF products without having to provide as much detailed information as required in the initial S-1 registration statement.

Grayscale, which manages up to $10.87 billion in assets in its Ethereum Trust (ETHE), recently amended its filing for a Spot Ethereum ETF. The asset manager announced that it filed an amendment and took an important step to uplift ETHE to the NYSE Arca. 

The push by Grayscale sprouts from the belief that investors deserve access to Ethereum in the form of a Spot Ether ETF. This explains why the asset manager builds a strong case for the same, just as it did for Spot Bitcoin ETFs. 

With the SEC leaving the two investments firms hanging, it has pushed the decision to a later date on June 11, 2024. The two entities, top fund managers in their own right, are pursuing approval from the SEC to launch investment vehicles that would trade on American stock exchanges, tracking the price of Ethereum.

Citing the SEC:

The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.

Other applicants who are also enduring delays include VanEck and BlackRock. As a side note, Grayscale has also filed for an Ethereum Mini Trust.

Grayscale has since responded to the SEC’s delay, saying, “We believe the case for spot Ethereum ETFs is just as strong as it was for spot Bitcoin ETFs. Today we submitted new regulatory filings that would further expand our product suite.

BlackRock files amendment to their 19b-4 ETH ETF application

Meanwhile, BlackRock is also not giving up its fight, as seen with the American investment firm filing an amendment to their 19b-4 ETH ETF application. ETF analyst from Bloomberg Intelligence James Seyffart says that while the iShares amendment is interesting, the likelihood that it would expedite an approval is slim to none, adding that the May 23 approval date estimation of 25% remains unchanged. Initially, it was as high as 70%.

The specialists expectation of an approval is not as ambitious as it was during the spot BTC ETF campaign considering the SEC has not really engaged with issuers on Ethereum specifics. This is the exact opposite of what happened during the BTC ETFs campaign.

Despite hopes for Ethereum ETF approvals, industry analysts, including JP Morgan, suggest that the chances of approval by the May deadline are uncertain, with estimates of no more than a 50% likelihood.

Another analyst from market-making firm GSR, Brian Rudick, stated that the company had lowered its prediction of a spot Ethereum ETF approval chance to 20% from the 75% optimistic prediction it gave in January.

On today’s delays, ETF specialist Eric Balchunas says it “looks like a final nudge to try and get the SEC's attention, although most likely in vain,” adding that the same pessimism they had then is the same they have now.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

FLOKI whales add 30 billion tokens to their holdings in May, meme coin rises 11% on the day

FLOKI whales add 30 billion tokens to their holdings in May, meme coin rises 11% on the day

Floki Inu (FLOKI) has noted a spike in on-chain metrics in May. The meme coin rallied alongside large market capitalization meme tokens like Dogecoin (DOGE), Shiba Inu (SHIB), Dogwifhat (WIF) and PEPE (PEPE) this cycle. 

More FLOKI News

Top 3 meme coins Dogecoin, Shiba Inu suffer price decline, Bonk price rallies

Top 3 meme coins Dogecoin, Shiba Inu suffer price decline, Bonk price rallies

Dogecoin (DOGE) and Shiba Inu (SHIB) decline on Tuesday amidst bearish on-chain metrics, as seen on Santiment. On the other hand, Bonk (BONK) price rallies amidst bullish technical indicators on its daily chart. 

More Meme coins News

XRP holders shed altcoin holdings at a loss, Ripple struggles to tackle resistance at $0.55

XRP holders shed altcoin holdings at a loss, Ripple struggles to tackle resistance at $0.55

Ripple holders shed their XRP holdings and took $20 million in profits since May 18. XRP social dominance is nearly at the same level, at 1.46%. XRP sustained above $0.52 on Tuesday but is down 1% on the day. 

More Ripple News

Bitcoin wallet tagged as Mt.Gox transferred nearly $2.93 billion in BTC, the asset hovers at around $68,000

Bitcoin wallet tagged as Mt.Gox transferred nearly $2.93 billion in BTC, the asset hovers at around $68,000

Bitcoin hovers around the $68,000 level on May 28, Tuesday as market participants brace for Mt.Gox transfers of BTC. The defunct crypto exchange’s wallet, tracked by on-chain intelligence trackers, have made BTC transfers to a new wallet. 

More Bitcoin News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP