SEC approves eight Ethereum ETFs from major asset managers, promising competitive fees and new investment opportunities.
The cryptocurrency market is abuzz with anticipation as the race to launch the first spot Ethereum ETF in the U.S. heats up. This development marks a significant milestone in the cryptocurrency investment landscape, reflecting growing acceptance and competition within the sector.
Issuers are finalizing preparations for the imminent launch of spot Ethereum ETFs, with the final S-1 registration forms already submitted. The U.S. Securities and Exchange Commission (SEC) has approved Ethereum ETF trading, set to begin on July 23, 2024. This follows the SEC's earlier approval of Bitcoin ETFs and aims to expand investment opportunities in cryptocurrency markets.
Eight Ethereum ETFs, approved on May 23, 2024, will be offered by asset managers including BlackRock, 21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital. These ETFs will have competitive fees, with preliminary information indicating fees ranging from 0.19% to 0.25%.
As the deadline for launching spot Ethereum ETFs nears, asset management firms have revealed their management fees, indicating the SEC's likely approval of their applications. BlackRock will charge a 0.25% fee for its Ethereum ETF, with a temporary reduction to 0.12% during its initial launch period. Franklin Templeton offers the lowest fee at 0.19%, while others like Bitwise and VanEck set theirs at 0.20%. Several issuers plan to waive fees initially under specific conditions.
Bloomberg's James Seyffart highlighted the competitive fee structures of the upcoming ETFs, with major players like BlackRock and Fidelity offering low fees and fee waivers to attract investors.
The market is closely watching the expiration of nearly $1.79 billion in Bitcoin (BTC) and Ethereum (ETH) options, which could lead to market volatility. The expiring contracts include 20,679 Bitcoin contracts worth approximately $1.31 billion and 142,583 Ethereum contracts valued at over $483.84 million. Traders are particularly interested in how these expirations and the upcoming Ethereum ETF launch will impact price movements and volatility.
The introduction of Ethereum ETFs is expected to positively impact ETH's price and attract fresh capital to the cryptocurrency market.