Several crypto ETF issuers are reportedly rushing to update their SEC filings as the chances for approved spot Ethereum products have increased significantly in the past day.
Fidelity, a major player on Wall Street, submitted a revised spot Ethereum ETF application with the U.S. SEC, removing all references to staking. This change suggests ongoing discussions with the regulator.
Reports indicate that the SEC has instructed other issuers and national exchanges like Nasdaq to speed up their spot Ether (ETH) ETF filings in anticipation of possible approvals.
Fidelity’s updated application may reflect the SEC’s current stance on staking features linked to Ethereum’s proof-of-stake (PoS) model.
Following Ethereum’s transition to PoS in 2022, the SEC began investigating the decentralized network and filed a lawsuit against Coinbase, the largest crypto exchange in the U.S., for allegedly offering unregistered securities through its Ethereum staking service.
News of Fidelity’s updated filing came just hours before the SEC’s deadline to decide on proposals from VanEck and ARK 21Shares this week.
Grayscale Investments also updated its filing for its Ethereum Mini Trust product, even after CEO Michael Sonnenshein stepped down on May 20. Scott Johnsson of Van Buren Capital noted that Grayscale still aims to classify Ether as a commodity, aligning with the industry’s view of the crypto as a non-security asset.
Jake Chervinsky, Chief Legal Officer at Variant Fund, mentioned that approval of the fund could provide clearer classification for Ether and resolve a long-standing debate.
Ethereum Market Rallies on ETF Approval Hopes
Following the news that the SEC might approve spot ETH ETFs, Ethereum’s market cap surged back to $450 billion, increasing by more than 22% in just 24 hours, according to CoinMarketCap.
Data from CoinGlass also showed a record high for Ether futures on centralized exchanges. The total open interest (OI) in unsettled contracts exceeded $15 billion for the first time, with Binance leading the trading activity with $5.97 billion in OI.
Summary Review: The rapid updates to SEC filings by multiple crypto ETF issuers, including Fidelity, reflect an increased likelihood of spot Ethereum ETF approvals. Fidelity’s removal of staking language in its application indicates active dialogue with the SEC, aligning with the regulator’s current stance on Ethereum’s proof-of-stake model. This move follows the SEC’s scrutiny of Ethereum staking and its legal action against Coinbase. As the SEC’s decision on proposals from VanEck and ARK 21Shares approaches, the crypto community remains hopeful. Grayscale’s continued efforts to classify Ether as a commodity further underscore the industry’s push for regulatory clarity. The market’s positive response to potential ETF approvals has boosted Ethereum’s market cap and trading activity, signaling strong investor confidence. Approval of these ETFs could not only solidify Ethereum’s status but also provide much-needed clarity in the ongoing debate over its classification.
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