Key insights:
- BlackRock and Fidelity, among others, push for SEC approval on Spot Ethereum ETFs with newly amended filings.
- Competitive ETF fees disclosed by Franklin Templeton and VanEck aim to reshape market dynamics.
- Significant seed investments were revealed, indicating strong backing and market confidence in upcoming Ethereum ETFs.
Eight prominent issuers, including BlackRock and Fidelity, have submitted S-1 amendments for Spot Ethereum ETFs. These amendments provide detailed disclosures on fees and seed investments as they await the SEC’s approval.
Spot Ethereum ETF S-1 Amendments
The eight firms, BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco, recently filed amended S-1 forms with the SEC. This new round of filings includes crucial information about fees and initial investments, a significant step toward regulatory approval.
Both Franklin Templeton and VanEck disclosed their fees, which are set at 0.19% and 0.20%, respectively. Eric Balchunas, a senior ETF analyst at Bloomberg, remarked, “VanEck’s fee of 0.20% is quite low, putting pressure on BlackRock to keep their fee under 30bps.”
Seed Investments
Several firms also revealed their seed investments, demonstrating a strong commitment to these funds. BlackRock leads with a substantial $10 million seed investment. 21Shares, Franklin Templeton, and Invesco, disclosed significant initial capital contributions as well, indicating a robust backing for their respective ETFs.
21Shares US LLC, the sponsor for the 21Shares Core Ethereum ETF, invested in 20,000 shares, equating to a seed investment of $340,739. Franklin Templeton and Invesco each disclosed an initial capital of $100,000 for their Ethereum ETFs.
Anticipation for SEC approval
The market eagerly anticipates the SEC’s final decision, with the potential launch date rumored to be July 2. The SEC has a stringent review process to meet all regulatory requirements before the ETFs can begin trading. The approval of 19b-4 forms last month was a significant milestone, but the registration statements must become effective for trading to commence.
This wave of amendments and detailed disclosures is part of the broader trend following the SEC’s approval of several Spot Bitcoin ETFs earlier this year, which featured fees between 0.21% and 0.39%. The competitive rates proposed by Franklin Templeton and VanEck suggest a price war to offer cheaper investment options to attract investors.
Optimism for Ethereum ETF approval
Recently, Blockchain software technology firm Consensys predicted that the SEC will approve S-1 filings for spot Ethereum Exchange Traded Funds. This approval is expected within days.
Jimmy Ragosa, product manager at Consensys, suggested that the long wait for spot Ethereum ETFs trading in the U.S. could soon end. Ragosa’s confidence is based on a recently amended S-1 document submitted by Bitwise Asset Management to the SEC on June 18.
He noted that Bitwise’s latest update removed details regarding the fee structure and initial investment, focusing instead on risk factors, legal and regulatory statements, contact information, and distribution plans. Given the specific areas requiring revision, Ragosa predicts imminent approval from the SEC.
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