The U.S. Securities and Exchange Commission (SEC) has approved two spot Ethereum exchange-traded funds (ETFs), Grayscale Ethereum Mini Trust and ProShares Ethereum ETF. These approvals are added to the 8 ETFs the SEC has previously approved, bringing the total number of approved Ethereum Spot ETFs to 10. However, it is not possible for these ETFs to begin trading immediately. The final step is to await comments on the ETFs’ respective S-1 filings.
SEC approved Ethereum
The United States Securities and Exchange Commission (SEC) has approved two spot Ethereum exchange-traded funds (ETFs): Grayscale Ethereum Mini Trust and ProShares ETH ETF. “After careful consideration, the Commission finds that the Offerings are consistent with the Exchange Act and its rules and regulations applicable to a national securities exchange,” the SEC said. made the statement.
This ETF represents the evolution of its predecessor, the Grayscale Ethereum Trust (ETHE). ETHE is a closed-end fund that was recently converted into an ETF. This transformation demonstrates Grayscale’s strategy to adapt to investor needs and regulatory standards and offer more accessible investment products. Bloomberg ETF analyst James Seyffart commented on Grayscale ETH Mini Trust’s strategic asset allocation. This strategy aims to provide stability as the product launches and protect against potential exits.
Companies also set fees
ProShares ETH ETF entered the market a little later. These ETFs are part of a broader wave of similar products coming to market soon. A total of eight spot Ethereum ETFs are ready to list soon, pending final SEC approval. These developments followed lengthy negotiations between the issuers and the SEC.Their financial structure aims to attract investors. Many of the upcoming Ethereum ETFs, including those from Franklin Templeton, VanEck, and Fidelity, will offer 0% fees initially. Grayscale’s products will have a higher fee structure of 2.5%, similar to its Bitcoin-focused funds.
As a result, Bitwise updated its S-1 form and set a 0.20% fee. On the other hand, Bloomberg experts expect approval on July 23. Additionally, BlackRock and Grayscale filed updated S-1 forms: BlackRock charges 0.25%, Grayscale charges 2.5%. However, experts find Grayscale’s fee high and expect outflows from the ETF.
The SEC’s approvals take the market entry of Ethereum ETFs a significant step forward. This development could be a major milestone for the cryptocurrency market, allowing investors to gain easier and more regular exposure to Ethereum. However, as we always state as Kriptokoin.com, investors are advised to do research before making any transactions. In this regard in particular, it is important to first carefully evaluate each ETF’s fees, investment strategies, and risks.
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