Cboe submits 5 amended ETH ETF filings amid renewed chance of approval

    2024.05.22 | exchangesranking | 59onlookers
    Cboe BZX filed 19-b4 amendments related to five spot Ethereum ETFs on May 21, significantly increasing the odds of each fund’s approval.

    The news coincided with a sudden spike in odds on Polymarket, which reports 70% odds of approval by May 31, up from just 10% hours before.

    Bloomberg ETF analyst James Seyffart commented on the development, stating that the filings validate earlier rumors and speculation.

    He acknowledged that each applicant is “still a potentially long way from a launch,” as the SEC must still issue approval orders on the 19b-4 filings, then S-1 registration statements. As such, each fund may not launch for “weeks or more,” according to Seyffart.

    Yesterday, Seyffart and his colleague Eric Balchunas increased approval odds to 75% amidst reports of upcoming amendments from their sources. Others, including FOX Business reporter Eleanor Terret, backed the reports based on their own sources.

    Five funds at play

    The Cboe BZX amendments concern proposals from Fidelity, VanEck, Invesco and Galaxy, Ark Invest and 21 Shares, and Franklin Templeton.

    The latest amendments do not account for all pending applications. Grayscale separately aims to convert its Ethereum Trust (ETHE) to a spot ETF on NYSE Arca, while BlackRock and Hashdex each intend to issue spot Ethereum ETFs on Nasdaq.

    The SEC must decide on VanEck’s spot ETH ETF on May 23. However, it may simultaneously approve multiple similar proposals with later deadlines.

    Staking not possible

    The amendments also describe critical aspects of each ETH ETF. Each filing states that the trust, fund, sponsor, custodian, and other parties will not engage in Ethereum staking.

    Some applicants previously proposed staking but removed the possibility in later S-1 statements.

    The filings also affirm that each fund will use cash creation and redemptions. By contrast, in-kind creations and redemptions would allow some participants to transact in crypto — a possibility that was raised but walked back during the approval of spot Bitcoin ETFs.

    Both factors are expected to influence the SEC’s decision on ETH ETFs.

    Mentioned in this article
    Ethereum Cboe Global Markets Fidelity Investments VanEck Ark Invest 21shares Franklin Templeton Galaxy Digital Grayscale Investments BlackRock
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