As a researcher with a background in finance and experience following the regulatory process of cryptocurrency-related financial instruments, I am excited about the recent developments regarding Ethereum Exchange Traded Funds (ETFs) in the US. The submission of S-1 applications by major financial institutions such as VanEck, Grayscale, BlackRock, Invesco Galaxy Digital, Franklin Templeton, Fidelity, 21 Shares, and others, is a significant step towards bringing Ethereum ETFs to Wall Street.
Institutions seeking SEC approval to list Ethereum-based exchange-traded funds (ETFs) in the United States filed their S-1 applications with the Securities and Exchange Commission (SEC) on June 21. There’s widespread anticipation that ETH ETFs could become available as early as the first week of July, potentially even before the US Independence Day festivities commence.
Around the end of last month, those financial institutions with 19b-4 filings under review had their applications approved for an initial assessment. Subsequently, they were requested to provide additional information before proceeding with the submission of S-1 applications. This process has unfolded accordingly.
The SEC is currently examining the submitted applications. Upon approval, the associated financial institutions will be authorized to introduce their ETFs, leading to their debut on Wall Street exchanges. So far, VanEck, Grayscale, BlackRock, Invesco, Galaxy Digital, Franklin Templeton, Fidelity, and 21 Shares have submitted their S-1 filings.
Individuals who have previously submitted their applications for investing in ETFs have provided information about the management fees. VanEck, for instance, will charge a fee of 0.20% from investors. Franklin Templeton’s fee is comparable, sitting at approximately 0.19%. The remaining applicants have yet to reveal their respective fees.
Bloomberg analyst Eric Balchunas indicated that it is likely that the fees charged by ETF providers on X, including BlackRock, will be disclosed next week. He noted that competitors such as VanEck and Franklin Templeton put pressure on BlackRock to keep their fees below 0.30%. In simpler terms, we can expect the fees for these ETFs to be revealed soon, with BlackRock feeling the need to keep its fee low compared to its competitors.
As a crypto investor, I’d interpret these filings as follows: BlackRock invested an initial $10 million in the Bitcoin investment product. Fidelity’s submission showed they planned to put in $4.3 million with a price of $38 per share. Bitwise’s amended filing from mid-June indicates they could secure up to $100 million from Panthera Capital upon launching their ETF.
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2024-06-23 20:21