BlackRock, Franklin, Bitwise, Invesco, Grayscale, Fidelity File Updated Spot Ethereum ETF S-1

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As a seasoned researcher with extensive experience in the financial industry and a particular focus on ETFs and digital assets, I’m excited to share my perspective on the latest developments surrounding the potential launch of Spot Ethereum ETFs from BlackRock, Franklin Templeton, Bitwise, Invesco, Grayscale, Fidelity, 21Shares, and VanEck.

The following companies – BlackRock, Franklin, Bitwise, Invesco, Grayscale, and Fidelity – have submitted revised S-1 forms to the Securities and Exchange Commission (SEC) in relation to their proposed Spot Ethereum ETFs. This development signifies a major advancement in the regulatory approval process, as the organizations finalize management fees in readiness for potential trading commencement next week.

BlackRock, Franklin, Bitwise, Invesco, Grayscale, Fidelity Fees

BlackRock, a leading asset management company, has established a fee of 0.25% for its Ethereum investment product. In their amended S-1 registration statement, they mentioned the possibility of forgoing the fee entirely or partially during specific timeframes. The fee is calculated daily at an annual rate and becomes due quarterly, to be paid in arrears.

21Shares, the issuer of an Ethereum Exchange-Traded Fund (ETF), has established a management fee of 0.21%. This fee will be waived for the initial six months or until the ETF’s assets surpass $500 million. Bitwise, another major player, has announced a comparable fee of 0.20%, with a similar waiver applying to the first $500 million in assets. In contrast, Grayscale’s Ethereum Trust carries a higher fee of 2.5%. However, Grayscale is also planning to launch a mini Ethereum ETF alongside these other offerings, which will charge a more modest fee of 0.25%.

As an analyst, I’d rephrase it as follows: The management fees for Invesco Galaxy and BlackRock are identical at 0.25%, while VanEck offers a slightly more affordable option with a 0.20% fee. Franklin Templeton boasts the most economical choice among these firms, with a management fee of just 0.19%. Fidelity recently disclosed a 0.25% fee but has pledged to waive it until the end of 2024.

Spot Ethereum ETF Expected Launch

Based on various reports, it is anticipated that Spot Ethereum ETFs will start trading as early as July 23. This development comes after the SEC’s approval of essential 19b-4 forms for eight such ETFs on May 23. For these ETFs to hit the markets, their registration statements must first be made effective.

According to Eric Balchunas, a senior analyst at Bloomberg ETF, the Securities and Exchange Commission (SEC) has requested the final S-1 forms from the issuers and is expected to grant effectiveness on Monday, July 22. Consequently, the launch of these securities is anticipated for Tuesday, July 23. This sequence of events implies that the firms are approaching the final stages in obtaining SEC approval.

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2024-07-18 00:47