SEC approves nine applications to launch spot ETH ETFs
Trading in the shares is expected to open on the NYSE, CBOE, and Nasdaq stock exchanges on July 23
![SEC approves nine applications to launch spot ETH ETFs](https://storage.getblock.net/source/1/zlpW9omWqqBvBOA6fAolKeRYVXOYfuv_.webp)
23.07.2024 - 08:46
143
4 min
0
What’s new? The US Securities and Exchange Commission (SEC) has formally approved investment companies’ Form S-1 applications to register securities of spot exchange-traded funds (ETFs) based on Ethereum, the largest altcoin. Trading of shares on US stock exchanges is expected to begin on July 23.
What else is known? Nine spot ETH ETFs from ten issuers have been admitted to the market and will be traded on three leading US exchanges. Thus, Grayscale is launching two products at once: Grayscale Ethereum Trust under the ticker ETHE and Grayscale Ethereum Mini Trust under the ticker ETH, both on the New York Stock Exchange (NYSE) with leading US crypto exchange Coinbase as the coin custodian.
ETHE’s management fee immediately after launch will be set at 2,5%, the highest in the industry. ETH, on the other hand, has no fee at launch, but it will reach 0,15% after six months, or when it reaches the $2 billion mark in assets under management. This fee is the lowest in the industry.
BlackRock, the world’s largest investment company, is launching iShares Ethereum Trust under the ticker ETHA on the Nasdaq exchange, with Coinbase also acting as custodian. The fee at launch will be 0,12%, and after 12 months, or accumulation of $2,5 billion in assets under management, will increase to 0,25%.
Fidelity acts as the issuer of the Fidelity Ethereum Fund (FETH) on the CBOE exchange, while it will also act as the custodian of the cryptocurrency. There will be no management fee at launch, which will increase to 0,25% after December 31 this year.
VanEck is launching the VanEck Ethereum ETF (ETHV) fund on the CBOE exchange, with the US crypto exchange Gemini as the custodian of the coins. The product will have zero fees for a year, or until it accumulates $1,5 billion under management. Once either of these conditions are met, the fee will increase to 0,2%.
Bitwise Investment Company acts as the issuer of the Bitwise Ethereum ETF (ETHW) on the NYSE exchange with custodian Coinbase. It will also impose a 0,2% fee only after six months, or an accumulation of $500 million in assets under management. The company said it will allocate 10% of revenue to open-source Ethereum developers. Bitwise started a similar initiative when it launched its spot BTC ETF, directing 10% of revenue to Brink’s NPO, OpenSats, and Human Rights Foundation.
Franklin Templeton is launching the Franklin Ethereum ETF (EZET) on the CBOE exchange, with Coinbase as custodian. The company will introduce a 0,19% fee after January 31, 2025, or when it accumulates $10 billion under management.
Investment firms ARK Invest and 21Shares have jointly launched the 21Shares Core Ethereum ETF (CETH) fund on the CBOE exchange, with Coinbase also acting as custodian. There is no management fee at launch, and it will reach 0,21% after six months, or when $500 million has been accumulated under management.
Finally, Galaxy Digital and Invesco are acting as issuers of Invesco Galaxy Ethereum ETH (QUETH). The shares will trade on the CBOE with a 0,25% fee, which is imposed at launch with no additional conditions for further increases. The custodian, as with most other funds, is Coinbase.
![BRN analyst predicts a decline in the ETH exchange rate on the launch day of spot ETFs](https://storage.getblock.net/source/1/tw2EpeqCh-Sdf2YxKgockFkVAe0d24lf.png)
BRN analyst predicts a decline in the ETH exchange rate on the launch day of spot ETFs
Trading of new products in the United States will begin on July 23
At the time of writing the news, Ethereum is trading at $3462, having lost 0,6% overnight, with a weekly gain of 2,4% and a year-to-date gain of 52%.
Useful material?
Incidents
Scammers took advantage of the former US president’s recent announcement of a real DeFi protocol
Sep 4, 2024
Technologies
The upgrade is aimed at implementing a new decentralized project governance system
Sep 2, 2024
Incidents
The company placed $2б4 billion in bonds maturing in 2026, but their value has fallen dramatically since the entrepreneur’s arrest
Aug 30, 2024
Incidents
In both cases, depending on the outcome of the investigations, the messenger could be blocked
Aug 29, 2024
Market
The project will offer a decentralized alternative to traditional banking services
Aug 29, 2024
Trends
Within a week of its launch, the platform managed to overtake its main competitor, Pump.fun on the Solana network
Aug 28, 2024