Ethereum ETF Providers Update Fee and Investment Details in Filings

2024-06-22 00:18:06

Ruholamin Haqshanas

Last updated:

June 22, 2024 04:18 EDT | 2 min read

Several prominent asset managers have submitted revised proposals for Ethereum exchange-traded funds (ETFs) to the United States Securities and Exchange Commission (SEC).

The filings by VanEck, BlackRock, Grayscale, Invesco Galaxy Digital, and Fidelity aim to provide updated information on their respective Ethereum funds, Eric Balchunas, an analyst at Bloomberg, noted in a recent post on X.

VanEck’s filing disclosed a management fee of 0.20% for its Ethereum fund, which is in line with competitors like Franklin Templeton, charging 0.19% in management fees. On the other hand, BlackRock has not yet announced the fee structure for its iShares Ethereum Trust (ETHA).

Balchunas suggested that VanEck’s fee announcement puts pressure on BlackRock to keep their management fees below 30 basis points (0.30%) at the very least.

VanEck is in and so is their fee, which will be 0.20%, which is pretty damn low, right around Franklin’s 0.19%. Adds a touch of pressure on BlackRock to stay under 30bps at least. So far looks like Eth gonna be as low or even lower fees than btc. pic.twitter.com/YfyM2FB5SF

— Eric Balchunas (@EricBalchunas) June 21, 2024

S-1 Approval is Final Step For Ether ETFs

The approval of the S-1 registration statement is one of the final steps before the ETFs can debut on Wall Street exchanges.

Balchunas predicts that the funds will launch in the first week of July, just before the U.S. Independence Day holiday.

In May, the SEC approved a rule change that allowed major asset managers, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise, to list and trade eight spot Ether ETFs.

Fidelity’s updated filing revealed that FMR Capital, one of its affiliates, has seeded the fund with $4.7 million at a price of $38 per share.

Bitwise also updated its ETF proposal with the SEC on June 19, indicating a potential $100 million investment from Pantera Capital upon the ETF’s trading launch.

In addition to these filings, Hashdex is seeking regulatory approval for a new ETF that combines spot Bitcoin and Ether.

Previously, Hashdex had abandoned plans to launch an ETF dedicated solely to Ether.

Ethereum ETF Approval Was Political

Bloomberg ETF analyst James Seyffart believes the approval of spot Ethereum ETFs was likely influenced by political decisions rather than purely financial considerations.

In a recent interview, Seyffart suggested that the political climate, including actions by the Biden administration and responses from the crypto community, played a significant role in the approval to go through.

Beyond Bitcoin and Ethereum, the approval of other crypto ETFs, including Solana, is unlikely without significant regulatory changes, Seyffart said.

He noted that a regulated market is needed to monitor these assets for fraud and manipulation.

In contrast, crypto investor and trader Brian Kelly has suggested that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States.

In a recent episode of CNBC’s ‘Fast Money’, Kelly, who is also the founder and CEO of the BKCM Digital Asset Fund, posed the question, “The trade now is, who’s next?”

He then suggested, “You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum, and Solana are probably the big three for this cycle.”

Meanwhile, Bitwise has launched its first Ether ETF commercial. The 39-second clip, which showcases the advantages of Ethereum, can also be minted on the Ethereum blockchain.

ETH-1,23%

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