VanEck filed a Form 8-A for its Ethereum product on Tuesday morning. This is a move that amounts to registration, which allows issuers to trade on an exchange once the product is approved. Meanwhile, Bernstein analysts published a report on the spot Ethereum ETF. The analysts noted that spot ETH ETFs may see lower demand compared to their Bitcoin counterparts. Analysts also noted in the report that the lack of staking feature in ETH ETFs means less spot conversion.
VanEck files Form 8-A on the way to spot Ethereum ETF
Fund manager VanEck moved one step closer to a spot Ethereum ETF by filing another form with the US SEC on Tuesday. In this regard, VanEck filed a Form 8-A for its Ethereum product. This is a move that refers to the registration that allows issuers to trade on an exchange once the product is approved. The move comes just days after firms vying for such a product filed amended registration statements called S-1s (or S-3 in the case of Grayscale, which wants to convert its Ethereum Trust into an ETF).
Critical date for a spot Ethereum ETF: July 2
Last month, the SEC approved forms 19b-4 for eight Ethereum ETFs. But the regulator still needs to allow the registration statements to take effect before trading can begin. Firms previously vying to become Bitcoin ETFs had filed Form 8-As about a week before those products began listing and trading after receiving approval from the SEC. VanEck’s move to file the Form 8-A is “just part of the process,” said Eric Balchunas, senior Bloomberg ETF analyst. Balchunas also pointed to a critical date:
VanEck filed the Form 8-A for spot Eth, which is just part of the process, but… it’s worth noting that they filed the 8-A for the spot Bitcoin ETF exactly 7 days before launch. A good sign for our July 2nd over/under (7 days from now). But then again, anything can happen. I am sure we will hear more soon.
Bernstein: Spot ETH ETFs may see lower demand!
Spot Ethereum ETFs, once approved for trading, will see the same demand sources as the Bitcoin ETF, but at a lower scale, broker Bernstein said in a research report published on Monday. In this regard, analysts Gautam Chhugani and Mahika Sapra wrote, “ETH will not see much spot ETH conversion due to the lack of ETH staking in the ETF.” They added that the base trade will likely find buyers over time, which will contribute to healthy liquidity in the ETF market. The basis trade involves buying the spot ETF and selling the futures contract at the same time and then waiting for prices to converge.
As you have been following on Kriptokoin.com, the US SEC gave spot ETH ETFs the green light last month. They are close to becoming available to investors in the US after the SEC approved key regulatory filings from issuers. “As the primary tokenization platform, ETH makes a strong use case for both stablecoin payments and tokenization of traditional assets and funds,” analysts wrote.
The US election will be decisive for the cryptocurrency world!
Ethereum and other digital assets need a “more advanced regulatory regime” and Bernstein expects the narrative to improve around the US elections later in the year as the likelihood of a Republican victory continues to rise and Trump is now pro-crypto. “Despite the recent pullback in crypto markets,” the report said, “the structural adoption cycle remains intact.
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