The long-awaited spot, Ethereum Exchange Traded Funds (ETFs), is finally set to start trading today, following approval from the United States Securities and Exchange Commission (SEC).
The spot Ethereum ETFs which represents the second largest crypto asset Ethereum, getting an Exchange Traded Fund product is a significant milestone for the crypto industry in the United States and is expected to spark a bull run pushing up the price of Ethereum.
The US SEC under Gary Gensler completed the approval of the registration forms from 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy.
Forms from Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust are also expected to be approved.
Eric Balchunas Senior ETF Analyst at Bloomberg announced the official approval for Ethereum ETF by the United States SEC on his X page. He added that the ETF issuers would be ready for trading by 9:30 AM New Jersey time
“It’s official: Spot Eth ETFs have been made effective by the SEC. The 424(b) forms are rolling in now, the last step = all systems go for tomorrow’s 930am launch. Game on.” Eric posted on X
The US SEC on July 22 approved the final S-1 registration forms for the launch of Ethereum ETFs across major stock exchanges in the country. These stock exchanges include the New York Stock Exchange (NYSE), Chicago Board Options Exchange (CBOE), and NASDAQ.
The approval was followed by a nod from the US SEC to begin trading on the spot Ethereum ETFs on July 23.
The largest Bitcoin ETF issuer, Blackrock IBIT is also in the game of issuing Ethereum ETFs and the Blackrock iShares Ethereum Trust is expected to list on NASDAQ.
Grayscale Ethereum Trust on the other hand is listed on the New York Stock Exchange (NYSE)
Fees
The various Ethereum ETF issuers have varying management fees ranging from 0.15% to 0.25%
Blackrock has a management fee of 0.25% while Grayscale has a higher fee of 2.5%. Bitwise will offer a management fee of 0.20% with a discount for the first $500 million in assets.
The remaining ETF issuers have decided to waive fees for a certain period until certain thresholds are met. They include Fidelity, 21Shares, Franklin Templeton, and VanEck.
What to know
- The final step of the spot Ethereum ETF approval which put an end to an eight-month-long process involved the approval of the final registration documents by the SEC on Monday allowing trading to commence by Tuesday.
- Ethereum ETFs are expected to spark a bull run in the industry pushing up the Price of Ethereum. Bitwise CIO has predicted that Ethereum ETFs could pull in about $15 billion in the first 18 months.