Published
1 month ago on
May 22, 2024
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VanEck's proposed Ethereum spot ETF has been listed on the DTCC under the ticker $ETHV, but it remains inactive pending SEC approval.
DTCC Listing: What It Means
VanEck's proposed spot Ethereum ETF has been listed on the Depository Trust and Clearing Corporation (DTCC) under the ticker $ETHV. This development marks a significant step forward for the ETF, despite not assuring approval from the US Securities and Exchange Commission (SEC).
The DTCC, which provides post-trade clearance, settlement, custody, and information services, included VanEck's Ethereum ETF in its new securities list. Despite its listing, the ETF is currently inactive, as indicated by the "N" status in the create/redeem column.
The DTCC clarified,
“This file includes both active ETFs that may be processed at DTCC and ETFs that are not yet active ("pre launch") and, therefore, are not able to be processed at DTCC, unless and until such securities have received all necessary regulatory and other approvals.”
SEC Approval Pending
VanEck's spot Ethereum ETF awaits a decision from the SEC, expected by the May 23 deadline. The investment management firm was the first to file for a spot Ethereum ETF in September 2023, with other industry players like BlackRock, ARK Invest, and Fidelity following suit.
The SEC's stance on Ethereum-based funds has historically been tepid, with limited engagement reported. However, just days before the impending decision, optimism surged. Bloomberg ETF analysts Eric Balchunas and James Seyffart now estimate a 75% chance of SEC approval for a spot Ethereum ETF, attributing this to the removal of staking provisions and shifting political dynamics. Following these developments, the price of ETH has risen 20.6%, reaching approximately $3,800.
Key Changes and Amendments
A pivotal change in the SEC’s engagement was its feedback to the spot ETH ETF applicants, prompting updates and refilings of their 19b-4 forms for their applications. These forms are critical as they propose rule changes that require SEC approval before ETFs can become effective. This feedback is seen as a positive indicator of potential approval.
In response, five potential spot Ether ETF applicants, including VanEck, Fidelity, and Franklin Templeton, submitted amended filings. These amendments generally involved removing provisions for ETH staking, aligning with the SEC's feedback.
Fidelity’s amended filing stated,
“Neither the Trust, nor the Sponsor, nor the Custodian, nor any other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust’s ETH becomes subject to the Ethereum proof-of-stake validation or is used to earn additional ETH or generate income or other earnings.”
Similar language was adopted by other Chicago Board Options Exchange (CBOE)-sponsored applicants.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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