In the final hours of the workweek, firms with approval to launch spot Ethereum ETF products have now submitted their updated S-1 registration statements. These filings provided more information on initial investments and fees, all while anticipating the Securities and Exchange Commission’s (SEC) ultimate approval.
Breakdown of Investment Fees Per Issuer
Earlier this year, the SEC approved several spot Bitcoin ETF products with fees ranging from around 0.21% to 1.5%. Subsequently, the regulatory agency gave the green light for 8 spot Ethereum ETFs but not yet in the market for trading.
In May, Franklin Templeton established its fee at 0.19% for its Ethereum ETF. VanEck recently announced its fee would be set at 0.20%, a fee that is competitive compared to Franklin Templeton’s 0.19%.
Senior Bloomberg ETF analyst Eric Balchunas shared in an X post that these fees could put some pressure on BlackRock to aim for under 30bps, at least. He added that it is likely for Ethereum’s fees to be as low as or even lower than that of Bitcoin. He also mentioned that the products might go live by July 2nd.
In the amended registration statements, firms also filed their seed investments. 21Shares US LLC invested $340,739 in the 21Shares Core Ethereum ETF.
Franklin Templeton put $100,000 into the Franklin Ethereum ETF. Grayscale and others shared more Ethereum and risk details as Invesco Galaxy Ethereum ETF got a $100,000 seed investment from Invesco Ltd.
Optimism On Spot Ethereum ETF
The crypto community is quite bullish on the digital asset and its incoming ETF product. It is said to believe that a rise in Bitcoin’s price could positively impact Ethereum as well. The overall global ETF landscape is progressing, leading to expectations of the asset going live soon.
The spot Ethereum ETF is designed to provide institutional investors with a way to access the underlying asset. It was reported recently that the number of big investors (whales) holding 10,000 Ethereum has surged by 3%. This whale accumulation is in anticipation of the forthcoming ETF trading.
Crypto enthusiasts are holding onto a bullish $8,000 price target for Ethereum by the end of 2024, a substantial increase from its current trading price of $3,505.96 as per CoinMarketCap data.
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