Ethereum ETF: STEP by STEP approval. Last HOURS decisive for the ok. What’s MISSING for the party

Here we are: just a few hours left until the end of a wait that seemed endless. SEC has until tomorrow to say the latest on the Ethereum Spot ETF in the United States, financial products that everyone had given up for dead and which instead seem to have big chances to be approved.

The news continues to arrive at a frenetic pace, and it is not easy to extricate ourselves from those who say it is cooked, those who say it is raw and those who unfortunately have not yet understood much of this approval process. This is why we decided to publish a report complete to understand what happened, what is happening and what will happen.

All in the midst of the chaos also created by SECwhich was extremely uncommunicative towards managers and the public, further complicating a situation characterized by one tension at the highest levels. To stay up to date on this approval process, also enter ours Telegram channela channel through which you can receive preview news (even on a global level) and talk to our editorial team.

Ethereum ETF: everything you need to know for the last 48 hours

There’s a lot going on in the world of Ethereum ETFs under approval in United States of America. News arrives every few minutes, just as new institutional updates arrive at a frenetic pace. Let’s take stock of the situation to understand how much is missing, when they will be opened to trade and what obstacles there are still to overcome.

We remind you that the documents that must be approved by SEC there are two. The first is the 19b-4: it is a document that must be sent by the exchanges that will list the ETF, i.e. CBOE for some managers, NYSE Arca for others and finally NASDAQ.

The second document is the form S-1, which instead is the full responsibility of the ETF managers. It contains all the details, starting from the functioning of the ETF, the commissions, the methods of creation and destruction of the units and the final conversion into Ethereum.

Late yesterday evening the updates arrived for the Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares and Franklin ETFs. These are all the ETFs that will be listed on CBOE. And therefore the only data we have is that in reality one of the three stock exchanges moved early.

In all likelihood, updates will arrive today for both those that will be listed on the NYSE Arca and those that will be listed on the NASDAQ.

We must also remind you at this juncture that the approval of the form 19b-4 does not involve the listing immediate product. Before you can see it on American stock exchanges, approval of the S-1 form will also be necessary.

• Form S-1: we are still at sea

As regards the S-1 forms, which must necessarily be approved before listing, we are still at sea. No significant updates have yet arrived, except for that of Grayscale Mini Ethereum and according to rumors the division of SEC which deals specifically with this form he wasn’t at the yet current of the change of program, i.e. of the fact that it would proceed with an approval.

Is this worrying? No. In all likelihood we will have approval of forms 19b-4 deadline, only to then wait weeks (or perhaps months) before seeing the approval process completed.

How long until the quotation?

An answer cannot be given. Firstly because forms 19b-4 have not yet been approved. Secondly because for forms S-1 it could take a long time, unlike what happened with the ETFs on Bitcoin.

We underline the use of the conditional, given that the situation is still very uncertain and everything could change in a matter of a few minutes or a few hours.

In addition, S-1 form issues have largely been resolved in the Bitcoin ETF approval process. And therefore we could have a relatively painless process that will not see any ramifications between the SEC and the managers.

Coinbase: done in 24 hours

Curious comment Emilie Choiwhich is COO of Coinbase, who stated:

There was a general negative market sentiment on the approval of Ethereum ETFs, when everything changed in a week, or rather, in the last 48 hours.

With a reference then to vote against SAB 121which saw many of the Democratic candidates go against their own party and the president Joe Biden and in favor of the crypto world, a sign that there is much less harmony on the issue of fighting the sector than it seemed until 1 week ago.

The signal for the administration Biden it would seem to be clear: the anti-crypto front is not only not united, but perhaps it doesn’t even exist outside the magic circle of Senator Elizabeth Warren.

Staking ETFs

The ETFs that have updated their forms have all removed it stakingi.e. the possibility of making a return – by participating in the consensus of the Ethereum network – of the $ETH collected.

This means that ETFs, at least in the initial phase, will not have built-in staking. We emphasize the initial phase, because in all likelihood later the managers will try to obtain approval for this type of operation too.

Staking is what could make Ethereum considered a security and therefore the process will probably be long and tortuous.

And now? What happen?

They will be hours of passion, particularly in the afternoon, when the US agencies open and when work begins on the other side of the ocean too. The updates to the missing forms 19b-4 should arrive and then we can go to sleep relatively peacefully.

SEC could also communicate any approval as early as today, even in the absence of form S-1, which could be discussed not only separately, but also over a longer timeframe.