Spot Ethereum ETF could begin trading soon: here’s why

VanEck has filed Form 8-A for a spot Ethereum ETF, signaling interest from major financial institutions in crypto investments, with anticipation of an S-1 registration in the coming weeks.

It’s noteworthy that the majority, over 80%, of initial crypto spot ETF investments were from retail investors. VanEck’s filing for a spot Ethereum (ETH) ETF signals a shift, indicating that major financial institutions are now stepping up their Ethereum investment efforts. 

There is a growing expectation that an S-1 registration for spot ETH ETFs will be filed in the coming weeks, and VanEck has just submitted its 8-A form. 

As Eric Balchunas, Bloomberg’s senior ETF analyst, posted, this 8-A form is a crucial step in the process leading to the launch of any ETF product. 

Balchunas believes that trading could commence soon, noting that VanEck filed its Form 8-A spot Bitcoin (BTC) trading seven days before its spot BTC ETF product went live in January. Balchunas believes that the launch date could be on July 2.

Form S-1, also known as a “registration form,” is the initial registration form that a company files with the U.S. Securities and Exchange Commission (SEC) when it decides to go public. 

This form is required for all companies that want 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.

The SEC approved 19b-4 forms for eight Ethereum ETFs last month — but before trading can begin, the regulator still has to allow the registration statements to become effective. Previously, firms hoping for a BTC ETF filed Form 8-As about a week before listing.

Implications 

VanEck’s filing is a significant milestone in the development of cryptocurrency investments, particularly for institutional investors interested in ETH investing. This move signals that major financial institutions are ready to act on Ethereum’s potential. 

The recent trend shows that more institutional investors are showing interest in crypto spot ETFs. This shift from retail to institutional investors could lead to more cash inflow and stability in the crypto market. 

A spot crypto ETF tracks the price of a specific crypto and invests portfolio funds into that crypto. These funds are traded on public exchanges but generally track a particular crypto. Like similar funds, crypto ETFs are on regular stock exchanges, and investors can keep them in their standard brokerage accounts.

This news comes as Vaneck was just slated to launch Australia’s first-ever spot Bitcoin ETF.