There is an exciting development for investors who want to invest in cryptocurrencies in the USA. The final approval process for spot Ethereum ETFs is gaining momentum. With the completion of applications submitted by eight different organizations, all eyes are now on the Securities and Exchange Commission (SEC).
S-1 forms and management fees on Ethereum ETFs
Prominent names including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares and Invesco have filed new filings with the SEC, filling in the gaps in their S-1 forms for Spot Ethereum ETFs. In these applications, issues such as management fees and seed investments were included in more detail. So far, only Franklin Templeton and VanEck have disclosed annual management fees. These fees were determined as 0.19% and 0.20%, respectively.
Bloomberg senior ETF analyst Eric Balchunas thinks VanEck’s low fee will lead to competition in the market, and other companies like BlackRock will be under pressure to keep their fees below 0.30%. Last month, the SEC approved the 19b-4 forms required for these ETFs. However, S-1 forms must also come into force before trading can begin.
Initial investments and market expectations
Some companies also disclosed the initial capital they spent to initiate investments in their applications. 21Shares US LLC, sponsor of the 21Shares Core Ethereum ETF, made an initial investment of $340,739 by purchasing 20,000 shares. Franklin Templeton $100,000, Invesco Ltd. made an initial investment of $100,000 for the Invesco Galaxy Ethereum ETF. BlackRock, on the other hand, attracted attention with a previously known high initial investment figure of 10 million dollars. These investments are important in terms of showing the issuer institutions’ commitment to the funds and providing the liquidity necessary for the start of trading.
The market is eagerly awaiting the SEC’s final decision. The SEC goes through a strict review process to ensure that all information is fully presented and regulatory procedures are completed. Although some rumors mention the possibility of a July 2 launch, investors are ultimately waiting for the SEC’s decision.
Competitive management fees and global attention
These developments are seen as an important step after the Spot Bitcoin ETFs approved by the SEC in January, as we reported as Kriptokoin.com. Management fees on spot Bitcoin ETFs were expected to range between 0.21% and 0.39%, with similar fees on Ethereum ETFs expected to apply. The fees announced by Franklin Templeton and VanEck met this expectation and show that there is a price war to offer investors more attractive options.
Interest in Ethereum ETFs is not limited to the United States. In Europe, Standard Chartered announced that it has opened a Spot Bitcoin and Ethereum trading desk. This development shows that global interest in cryptocurrency investment products is increasing. In short, the approval process for Ethereum ETFs in the USA is nearing completion. These ETFs, which are expected to start trading on stock exchanges in July, will offer investors the opportunity to invest in cryptocurrencies with traditional market instruments. It is a matter of curiosity how the markets will react after the SEC’s decision.
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