SEC Approves Launch of VanEck Ethereum ETF

The United States Securities Exchange and Securities Commission (SEC) has approved the VanEck Ethereum exchange-traded fund (ETF), marking a significant milestone for the market.

The Notice of Effectiveness of the ETF was filed on July 22, aiming to provide investors with a regulated means of gaining exposure to Ether in the US.

The approval follows a series of filings and amendments submitted to the SEC, reflecting a prolonged period of regulatory scrutiny.

Speaking with Cointelegraph, Lennix Lai, the global chief commercial officer at the crypto exchange OKX, explained that the approval “shows that the SEC doesn’t define ETH as a security", adding:

"This has a significant implication to the classification of proof-of-stake (PoS) tokens in the market. This could have cleared many regulatory roadblocks, uncertainty, and risks for businesses working with PoS tokens, and even paved the way for the ETFs of other PoS tokens.”

VanEck began advocating for a spot Ether ETF with its initial registration filing on May 7, 2021, with extended efforts and delays to meet the regulatory standards required for approval.

Essential filings leading up to the approval include the Prospectus under Rule 424(b)(3) and multiple amendments to Form S-1 as the firm adjusted to SEC compliance requirements.

The SEC requires S-1s for companies planning their first public securities offering, while the Rule 424(b)(3) prospectus provides final offering details after the S-1 is effective.

In July 8 filings, VanEck amended its S-1 registration with the SEC to secure the listing and trading of spot ETF shares.

As the final stage in the SEC ETF approval process, the crypto investments firm 21Shares also made amendments to receive final approval from the SEC.

Both firms’ filings did not include launch dates for US exchanges but indicated that the Ethereum ETFs would be launched as soon as practicably possible “after the effective date.”

Amid the SEC’s Ether ETF approvals, digital asset manager Grayscale confirmed that its two spot Ether ETFs officially began trading on July 23 on the NYSE Arca.

The launch of the Grayscale ETFs follows the SEC’s decision to sign off on the final approval on July 22, allowing several issuers to launch their products for trading.

On July 22, Grayscale transferred over $1 billion worth of ETH to Coinbase in preparation for the launch of its ETFs, moving 292,263 ETH, according to its Ethereum Mini Trust July 18 filing.

Sources:

https://cointelegraph.com/news/vaneck-ethereum-etf-sec-approval

https://www.sec.gov/Archives/edgar/data/1860788/999999999524002212/xslEFFECTX01/primary_doc.xml

https://www.sec.gov/edgar/browse/?CIK=0001860788

https://x.com/vaneck_us/status/1815639768178303314

https://www.sec.gov/Archives/edgar/data/1725210/000119312524181085/d796604ddef14c.htm