Cboe BZX filed 19-b4 amendments on May 21 regarding five spot Ethereum ETFs, significantly increasing the likelihood of each fund’s approval.
The news coincided with a sudden spike in odds on Polymarket, which reports a 70% chance of approval on May 31, compared to just 10% hours earlier.
Bloomberg ETF analyst James Seyffart commented about the development and states that the documents confirm previous rumors and speculation.
He acknowledged that each applicant “may still be a long way from a launch,” as the SEC still needs to issue clearance orders for the 19b-4 filings and then for the S-1 registration statements. As such, any fund may not launch for “weeks or more,” according to Seyffart.
Yesterday, Seyffart and his colleague Eric Balchunas increased the approval rating to 75%, amid reports of upcoming changes from their sources. Others, including FOX Business reporter Eleanor Terret, supported the reports based on their own sources.
There are five funds playing
Cboe BZX’s changes concern proposals from Fidelity, VanEck, Invesco and Galaxy, Ark Invest and 21 Shares, and Franklin Templeton.
The latest changes do not take into account all pending requests. Grayscale is separately aiming to convert its Ethereum Trust (ETHE) into a spot ETF on NYSE Arca, while BlackRock and Hashdex each plan to issue spot Ethereum ETFs on Nasdaq.
The SEC must decide on VanEck’s ETH ETF on May 23. However, it may simultaneously approve several similar proposals with later deadlines.
Switching off is not possible
The changes also describe critical aspects of each ETH ETF. Each filing states that the trust, fund, sponsor, custodian and other parties will not engage in Ethereum stakes.
Some applicants previously proposed discontinuance but removed the option in subsequent S-1 statements.
The documents also confirm that each fund will use cash creation and redemptions. In contrast, in-kind creations and redemptions would allow some participants to trade crypto – a possibility that was mooted but reversed during the approval of spot Bitcoin ETFs.
Both factors are expected to influence the SEC’s decision on ETH ETFs.
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