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

VanEck filed Form 8-A for its spot Ethereum ETF, citing interest in crypto investments from major financial institutions in anticipation of an S-1 filing in the coming weeks.

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

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

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

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

Form S-1, also known as the “registration form,” is the first registration form 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 wishing to be officially registered and listed on a public stock exchange. Form 8-A, also known as Registration for Certain Classes of Securities, is a registration statement required by the SEC for companies seeking to register securities.

The SEC last month approved 19b-4 forms for eight Ethereum ETFs; however, the regulator must still allow registration notices to come into force before trading can begin. Previously, firms hoping to acquire a BTC ETF had filed Form 8-As about a week before listing.

Implications

VanEck’s application is an important milestone in the development of cryptocurrency investments, especially for institutional investors interested in ETH investment. This move signals that major financial institutions are ready to act on Ethereum’s potential.

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

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

This news comes as Vaneck is scheduled to launch Australia’s first spot Bitcoin ETF.