US SEC Seeks Public Comments on ARK & VanEck’s Spot Ethereum ETFs
The US Securities and Exchange Commission (SEC) is reviewing applications for spot Ethereum exchange-traded funds (ETFs) from two asset managers – ARK Invest and VanEck.
According to the agency’s release dated September 21, the SEC has sought public comments on the potential benefits and risks of approving these ETFs. The regulator has opened a 45-day public comment period for both filings.
“The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.”
On September 6, the Chicago Board Options Exchange (Cboe BZX Exchange) filed two 19b-4 applications to the United States securities regulator, requesting for the ARK 21 Shares and VanEck Ethereum ETF investment products to be listed on the exchange.
While Ark 21Shares submitted S-1 filing on September 6, VanEck filed for the same in July 2021.
The proposed ETFs will track the price of Ether using the CME CF Ether-Dollar Reference Rate and adjust for expenses and liabilities, the filings said.
However, it is important to note that the review by the SEC does not guarantee acceptance of these ETFs. In fact, the first Ether futures ETF is slated to launch next month.
The regulator has so far favored futures-based ETFs for Bitcoin (BTC) and Ether (ETH), citing that investor protections provided by the CME futures market cannot match with that of a spot ETF.
Spot Ethereum ETF Race is On
Not long before, a Bloomberg ETF analyst James Seyffart noted that the spot Ether ETFs from ARK 21 Shares and VanEck “will ultimately start that clock.”
“The Spot Ethereum ETF Race is officially on. It’s early but I’d estimate a final deadline on these applications to be around ~May 23, 2024,” he said in a Tweet, early this month.
The Spot #Ethereum ETF Race is officially on. It's early but i'd estimate a final deadline on these applications to be around ~May 23, 2024.— James Seyffart (@JSeyff) September 6, 2023
Notably, we didn't see a VanEck spot Ethereum ETF S-1 from VanEck earlier because they filed for this thing all the way back in 2021!! pic.twitter.com/jLve8PpPrE
Seyffart also predicted that more spot Ethereum ETF filings would come in the coming days.
However, Ethereum ETFs come with their own obstacles such as regulatory approval. The regulator’s key concerns include investor protection, market manipulation, and underlying asset volatility. While there are unaddressed issues, spot Ethereum ETFs have the potential to increase acceptance, liquidity, and interest in the Ethereum ecosystem.