According to Blockworks, Matthew Sigel, the head of crypto research at VanEck, has urged the Securities and Exchange Commission (SEC) to prioritize the firm's ether ETF proposal. VanEck, a New York-based fund group managing approximately $100 billion in assets, was the first to file for a spot ether ETF in the US in 2021. The firm renewed its bid to launch such a product in September 2023. The SEC has until May 23 to rule on the fund, a day before the deadline to rule on a similar proposal by Ark Invest and 21Shares. Other firms, including BlackRock, Fidelity, Grayscale, Bitwise, Invesco, and Hashdex, are also looking to launch similar funds.
The SEC's engagement with stock exchanges and fund issuers increased earlier this week, sparking optimism about the possible approval of an ether ETF. Sigel stated that VanEck expects to receive feedback first and launch first, given that it was the first to file the S-1 for the spot Ethereum ETF. He urged the SEC to respect the queue, arguing that the proposed VanEck Ethereum Trust should be the first to hit the market. An SEC spokesperson declined to comment on the ether ETF proposals.
In January, the US securities regulator allowed 10 US spot bitcoin ETFs to launch on the same day. Four months later, BlackRock’s iShares Bitcoin Trust (IBIT) and the converted Grayscale Bitcoin Trust ETF (GBTC) have significantly more assets than any other competing product, with roughly $19 billion and $20 billion in assets, respectively. The VanEck Bitcoin Trust (HODL) manages about $700 million in assets.
Industry observers have noted that even if the SEC approves the 19b-4 proposals, launches would likely not follow immediately. Before any such funds would be allowed to start trading, the securities regulator would also have to approve the S-1 registration statements filed by VanEck and the other issuers, a process that could take weeks.