VanEck files form 8-A for spot Ethereum ETF

In this post:

  • VanEck filed Form 8-A for a spot Ethereum ETF, indicating a potential July 2 launch.
  • Analysts are divided, with some predicting a significant rally and others expecting limited impact.

Investment manager VanEck has filed Form 8-A for a spot Ethereum ETF. This filing is part of the process needed to launch a regulated investment vehicle for Ethereum.

ETF analyst Eric Balchunas pointed out that VanEck filed a similar form for their spot Bitcoin ETF just seven days before its launch. It is now seven days until the day he predicted the ETFs would be approved, July 2.

VanEck files form 8-A for spot Ethereum ETF
Source: Eric Balchunas

The filing includes all the details required for the registration statement. The description of the common shares, representing a “fractional undivided beneficial interest” in VanEck Ethereum Trust, is included. The filing states:

“This description is referenced from Amendment No. 4 to the Registrant’s Registration Statement on Form S-1, filed with the U.S. Securities and Exchange Commission (SEC) on June 21, 2024. All amendments and supplements to this registration statement, including any prospectus filed under Rule 424(b) of the Securities Act of 1933, are incorporated by reference.”

No exhibits are required to be filed with this registration statement on Form 8-A because no other securities of the Registrant are registered on the Cboe BZX Exchange, Inc., and the shares registered here are not being registered under Section 12(g) of the Exchange Act.

Source: VanEck

Ethereum caught between the bulls and the bears

The crypto market has been in a lull recently, with many bears arguing that spot Ethereum ETFs won’t be as big a catalyst as investors hope for. However, some analysts remain optimistic.

Bernstein analysts Gautam Chhugani and Mahika Sapra highlighted that the current weakness might present a buying opportunity.

They pointed to factors such as crypto adoption, Donald Trump’s pro-crypto campaign, and the powerful industry lobby scoring new wins as signals that the 2024 bull run is still on.

Chhugani and Sapra have previously predicted that Bitcoin could reach $200,000 over the next year. This prediction comes amid declining prices, with Bitcoin and Ethereum falling 16% and 17%, respectively, since March.

Investment firm QCP Capital believes the ETF approval will trigger a 60% rally in Ethereum’s price.

Despite the optimism, not everyone shares this enthusiasm. Andrew Kang, a founder and partner at Mechanism Capital, believes Ethereum may face several obstacles. Kang predicts that Ether could fall to as low as $2,400 following the launch of these ETFs.

VanEck files form 8-A for spot Ethereum ETF
Source: Andrew Kang

He cites a lack of institutional interest in Ethereum compared to Bitcoin and fewer incentives to convert spot Ether into ETF form. Additionally, the network’s cash flows have not been impressive.

“How much upside would an ETH ETF provide? I would argue not much,” Kang said. He expects Ethereum’s price to range between $2,400 and $3,000 after the ETF launch.

Jai Hamid

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