Five Ethereum Spot ETF Applicants File 19b-4 Forms to SEC
In a significant development for the cryptocurrency market, five Ethereum (ETH) spot ETF applicants have submitted their 19b-4 forms to the U.S. Securities and Exchange Commission (SEC). This move was reported by Bloomberg Intelligence analyst James Seyffart.
Last-Minute Submission Before Deadline
Fidelity, VanEck, Invesco/Galaxy, Ark Invest, and Franklin Templeton were the key players who submitted their Amended 19b-4 forms just 25 minutes before the deadline. These forms are crucial as they inform the SEC of a proposed rule change.
Removal of ETH Staking from ETFs
The 19b-4 forms were specifically used to eliminate Ethereum staking from their investment products. This action aligns with expectations from industry experts who anticipated that neither the issuer nor the user would be allowed to engage in Ethereum staking activities with the ETF.
Potential Classification of Staked ETH as Security
Alex Thorn, the Head of Firmwide Research at Galaxy Digital, highlighted on May 21 that the SEC might classify staked ETH as a security to approve the ETFs. This classification could significantly impact the approval process.
Approval Odds and Timeline
Despite the submission of the 19b-4 forms, Seyffart noted that the odds of the ETH ETF approval remain at 75%. He also mentioned that it could take “weeks or more” before these spot ETH ETFs are launched in the U.S.
Market Impact Predictions
Analysts at the Singapore-based trading firm QCP Capital believe that the approval of spot Ethereum ETFs could potentially push the asset’s price above the $5,000 mark. This prediction underscores the significant market impact that these ETFs could have if approved.
