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22/07/24
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Chicago Board Options Exchange Announces Date to List and Start Trading Spot ETH ETFs
On July 19, the Chicago Board Options Exchange (Cboe) announced that five spot ETH exchange-traded funds (ETF) be listed and start trading as a new issue on July 23, 2024, pending regulatory effectiveness.
The five exchange traded products (ETPs) include the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.
This came after the United States Securities and Exchange Commission (SEC) approved the 19-b filings of the asset managers to list and trade several spot ETH ETFs two months ago. However, the asset managers still await the sign off of their S-1 registration statements to commence trading of the ETPs.
The ETH ETF issuers have been announcing management fees and plan to offer a temporary waiver of fees as soon as they start trading. According to analysts within the crypto space, the ETPs may see inflows worth billions of dollars months after they are launched.
Institutional demand for the ETPs may rise significantly and could eventually bring about a supply crunch. Data shows that the metric, which tracks the amount of ETH for purchase on crypto exchanges known as the Ethereum Exchange Reserve, is at its lowest level seen in several years.
Seven days ago, Kaiko released a report noting that ETH’s liquidity conditions may be further enhanced when the spot ETFs are approved for listing and trading, just as BTC saw an improvement in liquidity after spot BTC ETFs were launched in the United States in January.
Likewise, Bitwise Chief Investment Officer Matt Hougan said it will be difficult for spot ETH ETFs to cope when they are launched, but their influence on the price of ETH may eventually be bigger relative to what happened to BTC prices after U.S.-based spot BTC ETFs were launched in January.
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