- SEC Requires Final S-1 Filing for Ether ETF by July 16, Launch Set for July 23
- Invesco and Galaxy each set their fees at 0.25%, while VanEck and Franklin Templeton set them at 0.20% and 0.19%, respectively.
- Analysts predict that an Ethereum ETF could attract $5 billion to $10 billion in new inflows.
The U.S. Securities and Exchange Commission (SEC) has issued final guidance to asset managers preparing to launch an Ethereum exchange-traded fund (ETF). According to a report by Bloomberg analyst Eric Balchunas, the SEC will require issuers to file their final S-1 statements by July 16, with the target launch date for new Ethereum ETFs set for July 23.
The documentation must detail any administrative fees that will be charged.
The move follows the SEC’s May 23 approval of the issuer’s Form 19-b, which proposed rule changes allowing for cryptocurrency-based investment products.
The asset manager now needs to receive approval for its initial securities registration form S-1, which represents a significant step forward toward the official launch of an Ether ETF.
Several prominent financial institutions are vying for SEC approval and the opportunity to bring Ether ETFs to market. Notable names include BlackRock, Grayscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton.
Companies have set different Ethereum ETF fee structures.
Invesco and Galaxy charge management fees of 0.25%, slightly higher than VanEck and Franklin Templeton, which charge fees of 0.20% and 0.19%, respectively.
However, this fee is significantly lower than the 2.50% management fee charged by Grayscale’s existing Ethereum Trust.
Grayscale, which plans to launch a new Ethereum ETF, has yet to disclose its new fee structure.
This competitive fee environment is expected to benefit investors, making an Ethereum ETF an attractive option for those seeking exposure to Ethereum.
Lowering fees will improve overall returns and, especially in the long run, will likely attract more investors.
Potential Market Impact of Ether ETF Approval
The SEC’s Ether ETF approval process is expected to follow a similar trajectory to the Bitcoin ETF. Analysts predict that the Ether ETF could attract significant investor interest, with up to $10 billion in new inflows within a few months of launch.
Tom Dunleavy, managing partner at cryptocurrency investment firm MV Global, suggests that the success of the Bitcoin ETF, which has attracted $15 billion in inflows, points to a bright future for an Ether ETF. He estimates that an Ether ETF could see inflows of between $5 billion and $10 billion.
The introduction of the Ether ETF marks a significant milestone in cryptocurrency investment. It is a step toward greater mainstream acceptance and accessibility of digital assets, providing investors with new opportunities to diversify their portfolios.
As the July 23 launch date approaches, all eyes will be on the SEC and asset managers racing to get approval, eager to see what impact this innovative investment product will have on the markets.