VanEck and other industry participants have called on the SEC to restore a 'first-to-file' process, claiming this is necessary to enhance fairness in Ethereum ETF approvals.
Equity Over Influence
VanEck, along with other firms, has submitted a request to the SEC to restore the 'first-to-file' process. They argue that deviating from this practice increases the likelihood of favoring larger players, thus reducing investor choice and market efficiency. As Matthew Sigel, Head of Digital Assets Research at VanEck, highlighted,
> "The bulk decision policy...diminish[es] investor choice, compromise[s] market efficiency, and fundamentally undermine[s] the commission’s mission."
Market Implications
Immediate implications include potential delays in securing approvals for BlackRock and others, impacting ETH liquidity and market positioning. The petition highlights tensions regarding equal footing for institutional players in cryptocurrency markets. Institutions urge reconsideration of existing rules, citing past batch-approvals for Bitcoin and Ethereum, which reportedly benefited larger firms disproportionately.
Future of Ethereum ETF Market
Potential outcomes include shifts in trading volumes as ETFs restructure to align with SEC endorsements. Analysts predict changes in ETH reserve asset status and regulatory positions, impacting on-chain governance and market flows if VanEck's plea is honored.
VanEck's statements reflect the ongoing battle for market participation and the need for regulatory consistency, which could reshape the Ethereum ETF landscape and its standing within the crypto ecosystem.
