On September 6, the Chicago Board Options Exchange (CBOE) filed two applications for a spot Ethereum ETF. One was submitted by VanEck, and the other was a joint appeal by ARK Invest and 21Shares. ETH reacted to the news with growth, but then quickly returned to its previous levels. Let's take a closer look at what happened.
A spot Ethereum ETF is a financial instrument that works like a spot Bitcoin ETF, allowing investors to buy financial products backed by real spot ETH.
Applications Details
CBOE submitted two types of filings for spot Ethereum ETFs to the US Securities Exchange Commission (SEC):
- Form S-1: This one indicates the firm's intention to list a particular investment product on a national exchange.
- Form 19b-4: These are filed by exchanges requesting changes to existing regulatory rules.
VanEck had already filed a Form S-1 application for spot Ethereum ETFs back in May 2021. However, the company still has not received a response from the regulator. ARK Invest and 21Shares jointly submitted a similar application on September 6.
Notably, VanEck is expecting a decision on spot Bitcoin ETF request in mid-October.
Moreover, on September 6, CBOE also filed two Form 19b-4 applications (ARK 21Shares and VanEck) to register spot Ethereum ETFs from the aforementioned companies.
CBOE's filings are more fundamental due to a strict regulatory obligation. According to Bloomberg analyst James Seyffart, the SEC must review and give a ruling on these applications by May 23, 2024. The expert also called this timeframe a race to introduce spot Ethereum ETFs. Seyffart expects more of such filings in the near future.
It is essentially important to note that although there is a deadline, the SEC is not obliged to accept these applications and can easily reject all of them. Bear this in mind before making financial decisions.
Market Reaction
The news significantly impacted the price of ETH. First, the asset quickly jumped from $1,615 to $1,670 but then returned to its pre-news level. As of the time of writing, ETH is trading at around $1,630.
Ethereum’s market capitalization currently stands at $195.6 billion.
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