The race for the first U.S. spot Ether exchange-traded fund (ETF) has just got a boost. This follows after popular asset manager VanEck filed an S-1 registration statement with the Securities and Exchange Commission (SEC) this week. The filing represents a major step towards getting approval for a potential launch of the product directly tied to Ethereum’s (ETH) price.
Fund to Focus on Transparency and Security
VanEck’s proposed ETF, with ticker “ETHV,” would track the performance of Ethereum and trade on the Cboe BZX Exchange. Unlike existing Bitcoin and Ethereum futures ETFs, a spot ETF would hold actual Ethereum, reflecting its price movements. The fund would base its daily share value on the MarketVector Ethereum Benchmark Rate, reflecting prices from major Ethereum trading platforms.
Also, according to the filing, VanEck promises that its fund will come with both transparency and security. The firm claims that its ETF won’t participate in staking or other yield-generating activities, saying that it aims to minimize potential risks for investors.
To this end, the fund will initially only allow authorized participants to create and redeem shares through cash transactions, VanEck added.
It is worth noting that this filing sets the stage for a potential surge in similar actions from other issuers like VanEck. While Bitwise already saw ahead, preemptively filing its S-1 last week, analysts believe that it’s almost certain that other issuers such as Fidelity, will likely follow suit with similar applications in the coming days.
VanEck, Others Awaits SEC Approval for Spot Ether ETF
At the moment, getting the U.S. SEC approval of a spot Ether ETF remains a hurdle. Although there are a few skeptics, a majority of the issuers are in high spirits and gearing up for launch in the next couple of weeks. If not for anything, January’s approval of 11 spot Bitcoin ETFs by the regulator brings hope that getting the SEC to greenlight a spot crypto ETF is not impossible. However, the commission has repeatedly aired its concerns about market manipulation and investor protection. VanEck’s filing will undergo some final review in the coming weeks, and the industry awaits the SEC’s decision with nothing but anxiety.
