In Likely Precursor to Ether ETF Approval, Most Applicants Have Submitted Their Final Forms

I, as an analyst, have observed that prominent asset management firms such as BlackRock, Fidelity, 21Shares, Grayscale, Bitwise, and Invesco Galaxy have recently updated their S-1 filings on Wednesday. These filings are crucial steps in their efforts to introduce exchange-traded funds (ETFs) based on ether in the United States market.

According to two insider reports shared with CoinDesk, representatives from the U.S. Securities and Exchange Commission (SEC) advised them to submit their final amendments by Wednesday for potential approval. If all goes according to plan, these applications could become effective – that is, be accepted – as early as Monday, allowing trading to commence on Tuesday.

In the recent securities filings, the anticipated bitcoin ETF creators disclosed the definitive aspects of their fund architectures, comprising management fees. These details proved crucial for investors as they decided which specific bitcoin ETF to invest in when they introduced earlier this year. Industry insiders forecasted that the fee competition in this round of launches would mirror the market dynamics at that time, with issuers reducing their fees to stay competitive against other funds.

One noteworthy similarity between Grayscale and its competitors is their distinct fee structures. While Grayscale levies a higher management fee of 2.5% on its primary product, other firms generally charge around 0.25% for comparable offerings, such as the Mini Ethereum Trust from Grayscale itself.

BlackRock and Fidelity have announced fees of 0.25%, whereas 21Shares has set its fee slightly lower at 0.21%. Bitwise, VanEck, and Invesco Galaxy are among the providers with the lowest fees at just 0.2%. Franklin Templeton, on the other hand, will charge a comparatively lower fee of 0.19%.

ProShares had not filed an amendment revealing its fee as of press time.

Mini ETF launch incoming?

The Securities and Exchange Commission (SEC) gave its approval for 19b-4 forms submitted by Grayscale and ProShares on Wednesday, enabling the former to introduce a mini Ethereum exchange-traded product and the latter to launch a Ethereum spot exchange-traded fund.

Two corporations have chosen NYSE Arca as their exchange collaborator, responsible for listing their prospective products. The SEC had earlier granted 19b-4 forms to NYSE Arca, Cboe, and Nasdaq in late May, clearing a procedural obstacle and suggesting strongly that the regulatory body would eventually approve the applications for spot ether ETFs.

Based on the timing of recent regulatory approvals on Wednesday for Grayscale and ProShares, it seems likely that these companies could introduce their Bitcoin ETFs concurrently with other applicants. Previously, industry insiders had anticipated a launch date of next Tuesday for these products according to CoinDesk’s reports.

If Grayscale intends to introduce its mini ether ETF before securing approval for a mini bitcoin ETF, it will do so on Tuesday. The application for the mini bitcoin ETF was submitted in April, with an announced fee of 0.15% – lower than the proposed 0.25% fee for the mini ether product.