The competition to launch America’s first spot Ethereum exchange-traded fund (ETF) is accelerating, with issuers hastily amending their applications ahead of a crucial deadline.

"It’s Happening"

On May 22, Bloomberg ETF analyst James Seyffart announced that at least five potential Ethereum ETF issuers had submitted their amended 19b-4 forms to the Securities and Exchange Commission (SEC) just hours earlier. These issuers include Fidelity, VanEck, Invesco Galaxy, Ark 21Shares, and Franklin, all filing via the Chicago Board Options Exchange (CBOE). Additionally, Grayscale updated its 19b-4 for the Ethereum Mini Trust earlier in the day.

The Scramble to Amend Applications

This rush follows an advisory from the SEC, which urged issuers to submit revised 19b-4 forms by May 21. The 19b-4 form is used by ETF issuers and exchanges to propose rule changes or introduce new products, specifically spot Ethereum ETPs in this instance.

The urgency is underscored by the upcoming deadline on May 23, which marks the first final date for SEC approval or denial of the VanEck spot Ethereum ETF. However, Seyffart cautioned that the road to launching these ETFs could still be lengthy, despite the recent filings confirming speculation and rumors about imminent approvals.

Approval Process: Not Immediate Launch

Approval of these 19b-4 forms is just the first step. The SEC must also approve the S-1 applications, which are the initial registration forms required for new securities offered to the public. This process ensures that the SEC and potential investors receive detailed information about the issuer's business operations and products. Seyffart clarified that even after SEC approvals, there could be a significant delay—potentially weeks or even months—before the ETFs actually launch.

Major Amendments and SEC Stance

The major amendments involved removing references to Ethereum staking from the ETF filings. The SEC has vetoed these components, maintaining its stance that Ether is a security and rejecting the inclusion of staking, which could have potentially offered greater returns to investors.

Seyffart remains optimistic, maintaining the approval odds at 75%, up from 25% earlier in the week. Despite this optimism, he highlighted the misconceptions around the approval process, noting that approvals do not equate to immediate launches of Ethereum ETFs.

Market Reaction and ETH Price Surge

The speculation around the potential ETF approvals has significantly impacted Ethereum prices, which peaked at $3,800 on May 21. Ethereum has retained most of these gains, trading at approximately $3,750 at the time of writing. Over the past week, ETH has surged by an impressive 31%, with the majority of this increase occurring in a single day.

In contrast, Bitcoin has struggled to maintain its gains, dipping below $70,000 as of Wednesday.

As the race for the first U.S. spot Ethereum ETF continues, market participants eagerly await the SEC's decisions, which will shape the future landscape of cryptocurrency investments.