Cboe boosts ETH ETF hopes with five amended filings

A recent event occurred in the financial markets: Cboe BZX filed 19-b4 amendments for five spot Ethereum ETFs on May 21st. This means that there is a high likelihood of these ETFs being approved in the future. The news has greatly affected market sentiments, as reflected by Polymarket, whereby the probability of approval stands at 70% by May 31st. This represents quite a drastic change from the previous estimate of only a 10% increase made a few hours ago.

The changes have attracted considerable attention in the investment sector. Major players such as Fidelity, VanEck, Invesco, Galaxy, Ark Invest, 21 Shares, and Franklin Templeton, to mention but a few, have shown great interest in their applications. Bloomberg’s ETF analyst James Seyffart noted that after receiving new information from sources, the probability of approval rises to 75%. This further supports other rumors and speculations that these funds may be approved.

However, in addition to the news about possible cryptocurrency funds, Seyffart stated there are still several steps before such funds can be launched. The filings and registration statements, 19b-4 and S-1, which must be reviewed by the SEC, may take as many as weeks or even more before they facilitate the operation of these funds.

The focus has shifted to such ETFs depending on the SEC’s decision on VanEck’s proposed Ethereum ETF by May 23rd. Maybe the regulatory body’s best chance would be to approve not just one but several applications with similar ideas and later dates, thus making the situation more straightforward and potentially even widening the availability of investment products related to Ethereum.

One of the main innovations arising from the recent amendments is the declaration that no trusts, funds, sponsors, custodians, or any other related parties will engage in Ethereum staking. This decision contradicts the situation where some applicants had planned to engage in staking but later omitted it from their S-1 filings.

Moreover, the filings further noted that each fund would employ cash creations and redemptions instead of in-kind creations and redemptions, the latter of which would have allowed some shareholders to engage directly with cryptocurrencies. This approach is closer to the conventional structures preferred by the regulatory authorities and plays a major role in approving spot Bitcoin ETFs.

These aspects, along with the careful structuring and recent amendments, are expected to be pivotal in the SEC’s decisions in the near future. As the market eagerly awaits the approval of these ETFs, especially with the backing of large reputable financial institutions, the approval and inauguration of these Ethereum ETFs can be considered a turning point in establishing new cryptocurrencies in traditional investment product portfolios.

If these ETFs are approved, the environment surrounding cryptocurrency investments in the U.S. may undergo a dramatic change, and investors will be offered additional ways to invest in Ethereum through traditional financial vehicles. This movement corresponds to a trend of growing acceptance of cryptocurrencies in institutions. It can be seen as a sign of a favorable future for their application in diversified portfolio investments.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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