As a seasoned researcher with extensive experience in the cryptocurrency market, I’ve closely followed the developments surrounding Ethereum-based ETFs in the United States. The recent news that final S-1 filings have been submitted to the SEC by prospective issuers is an exciting development for this space.
Ether exchange-traded funds (ETFs) from issuers are set for introduction in the US market within the upcoming week.
On July 18, Nate Geraci, president of ETF Store, announced that the final regulatory filings, specifically Form S-1s, had been submitted by potential exchange-traded fund (ETF) issuers seeking to launch Ethereum-backed ETFs. The Form S-1 is an essential document required by the Securities and Exchange Commission (SEC) for companies planning to offer new securities to the public.
As a researcher looking back two months ago, it was widely believed that these projects had little to no chance of being approved. Surprisingly, I now anticipate that the launch dates could be as early as Tuesday, July 23.
Looks like *Final* S-1s now IN from prospective spot eth ETF issuers…
2mos ago, just about everyone thought these had no chance of approval.
Next step = launch (sounds like Tues)!
— Nate Geraci (@NateGeraci) July 17, 2024
ETH ETFs Gearing Up
As a crypto investor, I closely follow the developments in the Ethereum ETF market. On July 18, Bloomberg ETF analyst James Seffart provided an insightful summary of the fee structures for the nine upcoming Ethereum ETFs slated to begin trading the following week. Notably, the fees for funds led by industry giants BlackRock and Fidelity stand at a competitive 0.25%.
To begin with, BlackRock is making an initial gesture by reducing fees for the first year by $2.5 billion for its iShares Ethereum Trust (ETHA), which holds assets worth over that amount. Fidelity has announced they will not charge any fees for their FETH fund until the end of the year. On the other hand, Ark and Bitwise are requesting management fees of 0.21% and 0.2%, respectively, for their Ethereum trusts.
“Seyffart mentioned that seven out of the ten newly introduced ETFs will forgo management fees for a specific period. The length of this fee waiver varies between six and ten months.”
“These issuers clearly anticipate intense competition, making it a challenging fight to secure assets.”
As a dedicated researcher, I’d like to share some exciting updates regarding the anticipated Ethereum Exchange-Traded Funds (ETFs) scheduled for launch in the coming week. I’ve gathered information on nine out of the ten funds. Here’s what we know:
— James Seyffart (@JSeyff) July 17, 2024
Concerns have arisen regarding the fate of Grayscale’s Ethereum Trust as a significant number of investors have withdrawn funds from its Bitcoin trust, resulting in over half of its managed assets being lost since the Bitcoin trust’s conversion into a spot exchange-traded fund.
According to recent filings, Grayscale will impose a 0.25% fee for investing in its mini Ethereum fund, which is named Ethereum Mini Trust. Notably, this trust will receive an initial investment of $1 billion from Grayscale’s Ethereum ETF, representing 10% of its total assets.
Based on Hodl Capital’s analysis, the potential outflow of assets from Grayscale’s ETHE fund could reach up to $10 billion.
Will Grayscale replicate the $GBTC fee mistake with $ETHE?
If so, expect 50%-60% outflows Just over $10 Billion AUM
— HODL15Capital (@HODL15Capital) July 17, 2024
Ethereum Price Outlook
Ethereum prices have remained robust after experiencing a surge of over 10% in value during the previous week. At present, the asset is being transacted slightly above $3,400. Yesterday, it reached a peak of $3,500 – its highest point in 17 days.
As a researcher studying the behavior of Exchange-Traded Funds (ETFs), I can assert that upon their launch, there might be minimal price adjustments. However, it’s plausible that market prices have already incorporated relevant information beforehand, making significant price fluctuations less likely.
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2024-07-18 18:57