SEC decision prompts BlackRock, Grayscale, and Bitwise to revise ETF filings

Three additional asset management companies based in the United States have made amendments to their spot Ether (ETH) exchange-traded fund (ETF) applications with the Securities and Exchange Commission (SEC). BlackRock, Grayscale, and Bitwise have all updated their 19b-4 filings in order to remove provisions for staking. The approval of these filings by the SEC would be a significant step towards the listing and trading of spot Ether ETFs on exchanges. The amendments state that neither the Trust, the Sponsor, the Ether Custodian, nor any other individuals associated with the Trust will engage in actions that would subject the Trust’s ETH to the Ethereum proof-of-stake validation or earn additional ETH or generate income. Similarly, on May 21, Fidelity, VanEck and Franklin Templeton, Invesco Galaxy, and ARK 21Shares made similar amendments to their applications. The SEC is expected to make a decision on whether to approve or deny the listing and trading of these ETFs by May 23, the final deadline for VanEck’s application. The SEC’s decision is being closely watched and has become intertwined with discussions about potential legislation to define the regulator’s role in digital asset regulation. The Depository Trust and Clearing Corporation has listed VanEck’s Ether ETF under the ticker symbol ETHV, which indicates that the asset manager is preparing for SEC approval. However, it remains uncertain whether the commission will move forward with approving spot Ether ETFs, as it did with spot Bitcoin investment vehicles earlier this year.