Potential Start of Trading for Spot Ethereum ETF on the Horizon
VanEck has submitted Form 8-A for a spot Ethereum ETF, demonstrating interest from major financial institutions in cryptocurrency investments, with an expectation of an S-1 registration in the near future.
It is worth noting that the majority, more than 80%, of initial crypto spot ETF investments came from retail investors. VanEck’s filing for a spot Ethereum (ETH) ETF signals a shift, indicating that major financial institutions are now increasing their Ethereum investment efforts.
There is a growing anticipation that an S-1 registration for spot ETH ETFs will be submitted soon, and VanEck has just filed its 8-A form.
According to Eric Balchunas, Bloomberg’s senior ETF analyst, this 8-A form is a critical step in the process leading to the launch of any ETF product.
Balchunas believes that trading could begin shortly, pointing out that VanEck filed its Form 8-A for spot Bitcoin (BTC) trading seven days before its spot BTC ETF product was launched in January. Balchunas suggests that the launch date could be on July 2.
Form S-1, also known as a “registration form,” is the initial filing that a company submits to the U.S. Securities and Exchange Commission (SEC) when it decides to go public.
This form is necessary for all companies that wish to be officially registered and listed on a public stock exchange. Form 8-A, also known as the Registration of Certain Classes of Securities, is a registration statement required by the SEC for companies seeking to register securities.
Last month, the SEC approved 19b-4 forms for eight Ethereum ETFs – but before trading can begin, the regulator still needs to approve the registration statements. Previously, companies looking to launch a BTC ETF filed Form 8-As about a week before listing.
Implications
VanEck’s filing marks a significant milestone in the development of cryptocurrency investments, particularly for institutional investors interested in ETH investing. This move indicates that major financial institutions are prepared to capitalize on Ethereum’s potential.
The recent trend indicates that more institutional investors are expressing interest in crypto spot ETFs. This shift from retail to institutional investors could result in more capital inflow and stability in the crypto market.
A spot crypto ETF tracks the price of a specific cryptocurrency and invests portfolio funds into that cryptocurrency. These funds are traded on public exchanges but generally follow a specific cryptocurrency. Like similar funds, crypto ETFs are listed on regular stock exchanges, and investors can hold them in their standard brokerage accounts.
This news comes as VanEck was recently scheduled to launch Australia’s first-ever spot Bitcoin ETF.
