In a recent X Space discussion, Matthew Sigel, Head of Crypto Research at VanEck, emphasized the importance of respecting the queue when it comes to ether ETF applications. As the first firm to file for an ether ETF in 2021, VanEck expects to be the first to launch its product, the VanEck Ethereum Trust. Sigel stressed that allowing multiple firms to launch their ETFs simultaneously would be unfair and go against the usual process.

VanEck refiled its application in September 2023, and the SEC's 240-day review period is set to expire on May 23. Other firms, including Ark Invest, 21Shares, BlackRock, Fidelity, Grayscale, Bitwise, Invesco, and Hashdex, have also filed applications for ether ETFs. The SEC has recently engaged with stock exchanges and fund issuers, sparking optimism about potential approval.

Sigel argued that the SEC should allow VanEck to respond to comments first, followed by the launch of its Ethereum Trust. He expressed concerns about the SEC's tendency to micromanage and anoint large incumbents as winners. The SEC allowed 10 spot bitcoin ETFs to launch simultaneously in January, with BlackRock's iShares Bitcoin Trust and Grayscale Bitcoin Trust ETF emerging as the largest products.

The proposed ether ETFs would not stake their ETH, according to recent filings. Even if the SEC approves the 19b-4 proposals, launches are unlikely to follow immediately. The regulator would need to greenlight the S-1 registration statements filed by VanEck and other issuers, a process that could take weeks.

Sigel's comments come as the crypto industry awaits the SEC's decision on ether ETF applications. VanEck's Ethereum Trust aims to provide investors with a spot ether ETF, and the firm is eager to be the first to market. As the SEC navigates the complex landscape of crypto regulation, VanEck's appeal to respect the queue highlights the importance of fairness and transparency in the approval process.