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23/07/24
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U.S. SEC Gives Final Nod to Listing and Trading of Spot ETH ETFs
The United Securities and Exchange Commission (SEC) has approved spot Ether (ETH) exchange-traded funds (ETFs) to start trading in the nation on July 23. The commission gave a final nod by approving the issuers’ final S-1 registration statements required to launch the ETFs on stock exchanges, including the Nasdaq, New York Stock Exchange and Chicago Board Options Exchange.
The issuers include BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy. This approval came after the commission approved their 19-b filings exactly two months ago. The 19-b filings were a proposal for a rule change to allow the listing and trading of the spot ETH ETFs on exchanges.
“We’ve now fully entered the ETF era of crypto. Investors can now access more than 70% of the liquid crypto asset market through low-cost ETPs,” said Matt Hougan, Bitwise’s chief investment officer.
“Being the first to file for an Ethereum ETF back in 2021, we have long believed investors should have access to Ethereum exposure in a vehicle they find accessible and familiar,” said Kyle DaCruz, VanEck’s head of digital assets.
Nasdaq will list BlackRock’s iShares Ethereum Trust, while the New York Stock Exchange (NYSE) will list the Grayscale Ethereum Trust. The Grayscale Ethereum Trust will offer a management fee of 2.5%, while others will offer a fee from 0.15% to 0.25%.
Some issuers have waived fees for their spot ETH ETFs for a while or until their products reach a particular amount in net assets, including Fidelity, 21Shares, Bitwise, Franklin and VanEck. Similarly, the Grayscale Ethereum Mini Trust will waive fees for the first six months or until it reaches $2 billion in net assets.
Some analysts within the crypto space believe that institutional demand for the ETPs may rise significantly and could eventually bring about a supply crunch. Kaiko’s report noted that ETH’s liquidity conditions may be further enhanced when the spot ETFs are approved for listing and trading.
Likewise, Bitwise Chief Investment Officer Matt Hougan said 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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