Sunday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

23 June 2024

Analysts forecast the debut of Ethereum ETFs in early July, as multiple asset managers have revised their proposals for submission to the United States Securities and Exchange Commission (SEC) on June 21.

Leading firms, including VanEck, BlackRock, Grayscale, and Invesco Galaxy Digital, submitted updated S-1 Registration Statements after market close on Friday. Fidelity also filed a new S-1 form earlier that day.

VanEck’s filing details a 0.20% management fee for its Ethereum fund, closely aligned with competitors like Franklin Templeton, which charges 0.19%. BlackRock has not yet disclosed the management fee for its iShares Ethereum Trust (ETHA).

Bloomberg analyst Eric Balchunas noted that VanEck‚Äôs fee “adds a touch of pressure on BlackRock to stay under the 30bps at least.”

These recent amendments follow several submissions to the SEC over the past weeks. Approval of the S-1 form is one of the final steps before these funds make their debut on Wall Street exchanges. Balchunas predicts the launch will occur in the first week of July, just before the U.S. Independence Day holiday.

In May, the SEC approved a rule change permitting major asset managers to list and trade eight spot Ether ETFs, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.

Fidelity’s updated filing revealed an initial seeding of $4.7 million at $38 per share by its affiliate, FMR Capital. Bitwise updated its ETF proposal on June 19, noting a potential $100 million investment from Pantera Capital at the ETF’s launch.

Additionally, Hashdex is seeking regulatory approval for a new ETF that combines spot Bitcoin and Ether, having recently abandoned its plans for an ETF dedicated solely to Ether.