VanEck’s spot Ether exchange-traded fund (ETF) has recently been listed on the Depository Trust and Clearing Corporation (DTCC) under the symbol “ETHV.” The DTCC is an essential American financial market infrastructure provider, and its listing is a significant step towards final approval from the U.S. Securities and Exchange Commission (SEC). However, the ETF is currently inactive on the DTCC website, indicating that regulatory approvals are still pending.
This listing on the DTCC follows Franklin Templeton’s spot ETH ETF listing on the platform a month earlier. Both active and inactive ETFs are listed on the DTCC, with only active ETFs being processed. The SEC has recently reached out to major exchanges like Nasdaq, the Chicago Board Options Exchange, and the New York Stock Exchange to update and modify existing spot Ether ETF applications. The shift in the SEC’s stance is believed to be influenced by political factors, with cryptocurrency gaining favor in recent months due to endorsements from figures like former President Donald Trump.
The SEC has taken action by requesting financial managers to amend and refile their 19b-4 filings for spot Ether ETFs, signaling a potential positive sign for approval. Analysts such as Eric Balchunas have increased the likelihood of approval to 75%, up from previous estimates. The final deadline for the SEC’s decision on VanEck’s spot Ether ETF application is May 23, while ARK’s spot Ethereum ETF application deadline is on May 24.
In addition to VanEck, Fidelity has filed an amended S-1 application with the SEC for its spot Ether ETF. The updated application specifies that the underlying Ether tokens of the ETF will not be staked. S-1 filings are necessary for launching publicly traded securities products in the U.S. The speculation around spot Ether ETF approvals has also positively impacted spot Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust witnessing a substantial inflow of $290 million on May 21, marking a trend reversal in inflows observed over the past six weeks.
On May 21, Bitcoin reached a six-week high of $71,600, but subsequently dipped below the $70,000 level on May 22, currently trading at $69,444. The influx of funds into BlackRock’s ETF represents the highest level since April 5, indicating increased investor interest in cryptocurrency ETFs. The approval of spot Ether ETFs and the positive market sentiment surrounding cryptocurrency investments signal a potential shift in the SEC’s approach towards digital assets, with regulatory approval likely to follow in the near future.
In conclusion, the listing of VanEck’s spot Ether ETF on the DTCC is a significant development in the journey towards SEC approval. The influence of political endorsements and market trends has reshaped the regulatory landscape for cryptocurrency investments, leading to increased optimism among analysts and investors. The recent filings and approvals for spot Ether ETFs indicate a growing acceptance of digital assets in traditional financial markets. With the final deadlines for decision-making approaching, all eyes are on the SEC to determine the future of spot Ether and Bitcoin ETFs in the U.S. market.
