VanEck Advances Plan to Introduce Ethereum ETF in First Spot


The judgment is due on May 23, and VanEck is arguing that the SEC should approve its spot Ethereum ETF first, rather than allowing for simultaneous approvals.

The prominent investment management company VanEck is urging the SEC to refrain from approving many Ethereum (ETH) exchange-traded funds (ETFs) at the same time in an effort to be the first to market. On May 23, the SEC will consider VanEck’s exchange-traded fund application. According to Matthew Sigel, Head of Digital Assets Research at VanEck, the company should release its spot Ethereum ETF ahead of the competition on May 22.

During his interview with The Block, Sigel brought attention to the fact that VanEck submitted its S-1 registration statement ahead of schedule and is now waiting for response before moving forward. The importance of filing first “used to signify something” until the US government began “picking winners,” according to his argument. To “respect the queue” and allow the first filer to start first, Sigel pleaded with the SEC.

While the SEC did approve all spot Bitcoin ETFs at the same time, Sigel pointed out that this did not prevent it from “choosing winners.” Even with simultaneous approvals, some funds nevertheless managed to rack up a lot greater assets under management (AUM), proving their superiority.

According to Sigel, VanEck is not planning to fight the SEC over the rejection of its application; instead, it is hoping that other court actions will settle the matter. On social media, he further stressed how issuers might benefit from a first-come, first-served strategy when planning product launches. Early filers incur additional expenses and legal fees due to the need to revise their applications more often as a result of waiting for approvals.

On May 23, the SEC is anticipated to make a ruling on the first of several identical petitions, which pertains to VanEck’s spot ETH ETF. Because of VanEck’s position, people’s expectations about the approval process have changed. Coinbase Institutional research analyst David Han made the observation on May 15 that concurrent product approval by the SEC is not necessary. He referred to Mark Uyeda, a commissioner at the SEC, who said that the agency conceals its anti-first-mover bias.

While some have hypothesized a shortened approval procedure, others have proposed other explanations. The SEC may grant approval to 19b-4 filings before addressing S-1 registration statements, according to Nate Geraci, president of ETF Store. It may take businesses weeks, or even months, to launch their Ethereum exchange-traded funds (ETFs), according to James Seyffart, an ETF analyst at Bloomberg. This is after first 19b-4 approvals.

The effect on the market and the timeliness of approvals are the key concerns. For the sake of equity, Sigel contends that the first filer should go live. To keep markets running smoothly and give all applicants a fair shot, the SEC is using a simultaneous approval process.

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