As a seasoned crypto investor with several years of experience under my belt, I have seen my fair share of market fluctuations and regulatory approvals. The latest news about the potential approval of spot Ethereum ETF trading by the SEC has been a topic of great anticipation and excitement within the community.
Multiple financial analysts and market commentators have expressed confidence in the past that the SEC would grant final approval for Ethereum spot ETF trading by July 23. This belief was strengthened by Cboe’s recent announcement of a new listing.
Spot Ethereum ETF Trading on The Horizon
ETF Store President Nate Geraci highlighted CBOE’s new listing, adding that it’s “almost go time.”
The following ETFs for Ethereum were featured in the list: Fidelity Investments, Franklin Templeton, Invesco, 21Shares, and VanEck. It is expected that these applicants will receive approval for their ETFs by July 23, as indicated in the first day of trading statements, suggesting a strong likelihood that regulatory approval will be granted as forecasted.
Cboe new listings…
It’s happening.
Almost go time.
— Nate Geraci (@NateGeraci) July 19, 2024
These investment firms have devoted significant effort and resources to meet the Commission’s requirements in order to reach this stage.
BlackRock, Franklin, Bitwise, Invesco, Grayscale, and Fidelity have recently updated their S-1 forms for proposed Ethereum ETFs. They are optimistic about a potential listing coming up next week. Notably, the management fees outlined in each filing indicate that they are nearing the final stages of readiness for trading.
Sponsor Fee War For Spot Ethereum ETFs
BlackRock, the top contender for a Bitcoin ETF, set its sponsor fee for an Ethereum ETF at 0.25%, which is 31% higher than Franklin Templeton’s fee of 0.19%. Notably, BlackRock has the option to forgo fees altogether or partially during specific timeframes. The charge, calculated daily and annualized, is payable on a quarterly basis.
Bitwise announced a fee of 0.20%, with an introductory discount for the first $500 million in assets, amounting to 0.20%. VanEck previously declared they would forgo ETF fees indefinitely or until assets reached $1.5 billion. On the other hand, 21Shares sets the sponsor fee at a rate of 0.21% for their Ethereum ETF.
The management fees for all companies fell between 0.19% and 0.25%. However, Grayscale surprised the crypto community by announcing a fee of 2.5%, which is ten times higher than other companies. Geraci believes this could be a repeat mistake from Grayscale regarding GBTC. He criticized them for prioritizing short-term profits over long-term strategies.
Instead, Grayscale offset the substantial fee with a lower charge of 0.15% for its Grayscale Ethereum Mini Trust ETF.
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2024-07-20 01:33