All eight applicants of Spot Ethereum ETFs have submitted their S-1 amendments, adding more information about fees and seed investments, and are waiting for the SEC’s nod.
Some of the notable filings include those from BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco.
Spot Ethereum ETF S1 Amendments and Fees
BlackRock, Invesco Galaxy, VanEck, Franklin Templeton, Grayscale Investments, and 21Shares have submitted the new round of amended S-1 filings for Spot Ethereum ETFs to the SEC on Friday. Both Bitwise and Fidelity had submitted their amendments earlier.
Currently, only Franklin Templeton and VanEck have revealed their fees, which stand at 0.19% and 0.20%, respectively.
All spot eth ETF S-1 amendments are now IN…
Bitwise, Fidelity, 21Shares, Grayscale, Franklin, VanEck, iShares, & Invesco.
Known fees so far are Franklin (0.19%) & VanEck (0.20%).
Now we wait for SEC. https://t.co/7Uo4kIOQg8
— Nate Geraci (@NateGeraci) June 21, 2024
Eric Balchunas, a senior ETF analyst at Bloomberg, said, “VanEck’s fee of 0.20% is quite low, putting pressure on BlackRock to keep their fee under 30bps.” The SEC approved the 19b-4 forms for these ETFs last month, but the registration statements need to become effective before the trading can begin.
Seed Investments Disclosed
Some firms also revealed the seed capital that they have invested in such disclosures. 21Shares US LLC, the sponsor for the 21Shares Core Ethereum ETF, acquired 20,000 shares, which made a seed investment of $340,739.
Franklin Templeton disclosed a $100,000 initial capital for its Ethereum ETF while Invesco Ltd. put in $100,000 for the Invesco Galaxy Ethereum ETF.
BlackRock is in.. no fee posted but they did report seeding with $10m (altho I think that may have been known already in prev filing). Anyway that’s basically a wrap. Ball in SEC’s court now. pic.twitter.com/nbYoJo8Xj4
— Eric Balchunas (@EricBalchunas) June 21, 2024
BlackRock disclosed a relatively large seeding payment of $10 million, despite this information being public prior to the announcement. These investments are important because they show that the issuers are committed to the funds and offer the initial capital for the ETFs to trade.
Read Also: Ethereum ETF Approval Process Labeled Political By Nate Geraci, Here’s All
Anticipation for SEC Approval
The updated filings are submitted as the market eagerly awaits the final decision from the SEC. The SEC has a strict review process that guarantees that all the disclosure and other regulatory procedures are done before ETFs begin trading. With the launch date rumored to be on July 2, investors are now waiting for the ruling of the SEC.
Subsequently, this year in January, the SEC allowed a number of Spot Bitcoin ETFs with fees between 0.21% and 0.39% which paved way for Ethereum ETFs. The rates that have been proposed by Franklin Templeton and VanEck are relatively competitive meaning there is a price war going on to provide cheaper investment options to the investors.
The enthusiasm around Ethereum ETFs is wider than just the US. In Europe, Standard Chartered has announced the launch of a Spot Bitcoin and Ethereum trading desk, indicating a growing global interest in cryptocurrency investment products.
Read Also: Ethereum Price Drops Below $3,500 as Whales Transfer $79M to Coinbase
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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.
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