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Bloomberg analyst James Seyffart shared on X that the movement to approve spot Ethereum exchange-traded funds (ETF) in the US “is happening.” According to Seyffart, at least five of the potential Ethereum ETF issuers have submitted their Amended 19b-4s in a 25-minute timespan.
UPDATE: It’s happening. We have at least 5 of the potential #Ethereum ETF issuers that have submitted their Amended 19b-4’s in the last ~25 min.
Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, & Franklin all submitted via CBOE. pic.twitter.com/pHGt8iRWi8— James Seyffart (@JSeyff) May 21, 2024
“Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, & Franklin all submitted via CBOE,” he added. The 19b-4 Form is one of the mandatory documents that need to be filed before the SEC can approve an ETF.
However, even with the spot Ethereum ETFs approved in the US, Seyffart highlights that this doesn’t mean an immediate launch. Notably, it can take up to months after the approval of Ethereum ETFs before they can be officially traded.
“But these filings prove that all of the rumors and speculation and chatter have been accurate. Need to actually see SEC approval orders on all the 19b-4s AND THEN we need to see S-1 approvals. Could be weeks or more before ETFs launch,” added the Bloomberg analyst in another post.
Most likely a political decision
Commenting on a The Block article about the motivations behind the sudden pivot to a spot Ethereum ETF approval, Seyffart agreed with undisclosed sources that stated this is “a completely unprecedented situation, which means it’s entirely political,” and that “they’re not even internally coordinated yet, which is why this is most likely a political decision.”
James’ fellow Bloomberg ETF analyst Eric Balchunas already suggested this in a Monday X post, saying that rumors around the SEC shift in stance pointed to “political issues.”
Seyffart concludes his series of posts on X by admitting that he was wrong about a spot Ethereum ETF approval not happening this week, but so was the entire market.
Notably, as reported by Crypto Briefing, not even notorious fund managers were expecting a spot Ethereum ETF approval in the US this week. Katherine Dowling, general counsel for ETF applicant Bitwise, said that “most people are universally expecting a disapproval order.” VanEck CEO Jan van Eck also predicted a likely denial during a CNBC interview.
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