- Following weeks of registration statement adjustments, the SEC has cleared a number of spot Ethereum exchange-traded funds (ETFs), enabling them to start trading on Tuesday, July 23rd.
The registration forms for the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust, as well as those from 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy, have been approved by the U.S. Securities and Exchange Commission.
The final S-1 registration statements for the introduction of spot Ethereum exchange-traded funds (ETFs) across significant stock exchanges, including as Nasdaq, the New York Stock Exchange (NYSE), and the Chicago Board Options Exchange (CBOE), were approved by the US SEC on July 22.
BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy are among the authorized issuers.
This approval comes after the SEC approved rule amendments on May 23 that permitted the listing and trading of spot Ether ETFs. The Grayscale Ethereum Trust will be listed on the NYSE, and BlackRock’s iShares Ethereum Trust will be listed on Nasdaq.
With the exception of the Grayscale Ethereum Trust, the majority of spot Ether ETFs will have management fees between 0.15% and 0.25%.
In contrast to BlackRock’s 0.25% cost and Grayscale’s higher 2.5% fee, Bitwise will provide a competitive 0.20% fee with an initial discount for the first $500 million in assets.
Additionally, it has been stated that Fidelity, 21Shares, Franklin Templeton, and VanEck will eliminate fees for a predetermined amount of time or until their products meet predetermined net asset levels.
For the first six months or until it reaches $2 billion in assets, there are no fees associated with the Grayscale Ethereum Mini Trust.
Notably, like other ETFs and stocks, retail investors will be able to buy these Ether ETFs through brokerages like Robinhood and Fidelity.
The expected rise in institutional demand may cause supply constraints, which would raise price volatility and raise Ethereum’s value.
The listing and trading approval of Bitwise and Grayscale ETFs have been confirmed by the New York Stock Exchange Arca, which is a major step forward for regulated exposure to Ethereum.
In addition, the CBOE has verified that the spot Ethereum ETFs it has suggested, including those from VanEck, Fidelity Investments, Franklin Templeton, Invesco, and 21Shares, will start trading that day.
Spot Ethereum ETFs from Bitwise and Grayscale have been accepted for registration and listing by NYSE Arca under the Exchange Act of 1934, according to documents filed with the U.S. Securities and Exchange Commission (SEC).
With the goal of providing investors with a regulated way to access Ethereum, this certification denotes the official launch of these financial instruments onto the market as well as their regulatory acceptance.
There were two comprehensive steps in the listing process. In May, the SEC approved 19b-4 forms, the first step needed for NYSE Arca to move forward with the listing.
The last stage, which was completed on Monday, is for the SEC to approve the registration statements so that the ETFs can start trading on Tuesday.
The release of these ETFs may open the door for the release of other financial instruments pertaining to cryptocurrencies.
The introduction of Ether ETFs may pave the way for the introduction of other altcoin ETFs, such Solana’s native token, SOL, according to Bloomberg ETF expert Eric Balchunas.
Remember that after launch, there will undoubtedly be flows, more ETH products, Solana, and so on. It’s likely that this process will never come to a conclusion. “The dam broke,” said Balchunas.
Although these new financial products are met with optimism, some analysts believe that ETH might reach previously unheard-of prices of up to $100,000 and higher thanks to these spot ETFs.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
