Whether the Ethereum spot ETF can be approved by the US Securities and Exchange Commission (SEC), and whether collateralization can become a key factor. Grayscale and Fidelity both submitted new applications to the SEC on Tuesday, canceling their plans to pledge ETH in the ETF.
(Mission Brief:
Important Sign》VanEck, Franklin Ethereum Spot ETF listed on the DTCC pre-listing list! ETH surged to $3,800.
)
(Background:
Don’t be too happy! Bloomberg analyst: The SEC will approve the Ethereum spot ETF “19b-4” as early as Wednesday, but there is still one key hurdle to overcome..
)
Market expectations for the approval of the Ethereum spot ETF by the US Securities and Exchange Commission (SEC) have sharply increased this week, including: Bloomberg ETF analyst raising the approval probability to 75%, VanEck and Franklin’s Ethereum spot ETFs have been listed on the Depository Trust & Clearing Corporation (DTCC), and six Ethereum spot ETF applicants have submitted revised 19b-4 documents, including VanEck, Fidelity, Franklin, Ark Invest, Grayscale, and Invesco Galaxy. These positive news have continued to push Ethereum higher.
Grayscale and Fidelity cancel ETH collateralization plans
It is worth mentioning that Grayscale, in its application last October to convert the Grayscale Ethereum Trust (ETHE) into an Ethereum spot ETF, proposed to investors in the application documents that they could pledge Ethereum through ETHE. However, Grayscale has deleted the relevant wording in the revised preliminary prospectus submitted on Tuesday, indicating that Grayscale seems to have abandoned the plan to pledge Ethereum through ETHE. Other applicants have also taken similar measures.
Previously, 21Shares, formerly known as Amun, had canceled its plan to pledge Ethereum in its updated application documents on the 10th. Fidelity’s revised S-1 filing submitted to the SEC on Tuesday also showed that Fidelity has withdrawn its proposed plan to pledge Ethereum holdings through the ETF. Fidelity had previously stated in its application documents that it intended to pledge a portion of the trust fund assets to one or more infrastructure providers, but Fidelity clearly stated in the revised S-1 filing that it will not pledge the Ethereum held by the custodian.
Regarding the submission of revised 19b-4 documents by multiple Ethereum spot ETF applicants and the abandonment of Ethereum collateralization, James Seyffart, Bloomberg ETF analyst, commented:
The key to approval lies in collateralization.
Previously, Alex Thorn, Director of Research at Galaxy Digital, stated that in order for the SEC to approve the Ethereum spot ETF, it may consider that ETH itself is not a security, but the pledged ETH would become a security. The SEC would prohibit these ETFs from pledging the ETH they hold.
Mark Connors, Director of Research at 3iQ, a digital asset investment company, said:
Related Reports
ETH surges 20% to break $3,700! Bloomberg analyst reports good news: The probability of SEC approving Ethereum spot ETF increases to 75%…
Countdown of Ethereum spot ETF review: Will the SEC technically reject it? If rejected, what will the issuer do?