As a seasoned researcher with extensive experience in the financial industry and a particular interest in digital assets, I find this recent development in the world of Ethereum Exchange-Traded Funds (ETFs) particularly intriguing. The United States Securities and Exchange Commission’s (SEC) approval of two Ethereum ETFs – the Grayscale Ethereum Mini Trust and the ProShares Ethereum ETF – is a significant step forward for the cryptocurrency market and its institutional investors.
Two Ethereum exchange-traded funds (ETFs) have been given the green light by the United States Securities and Exchange Commission (SEC) for listing on the New York Stock Exchange’s (NYSE) Arca platform, as indicated in a filing dated July 17. The approved ETFs are named Grayscale Ethereum Mini Trust and ProShares Ethereum ETF.
Grayscale, a cryptocurrency investment firm, voiced optimism regarding the SEC’s approval, affirming their commitment to collaborating closely with SEC personnel in pursuit of securing complete regulatory approval for US Ethereum Exchange-Traded Products (ETPs).
The Grayscale Ethereum Mini Trust is among the two Ethereum spot ETFs that Grayscale intends to take public. In May, the company secured SEC authorization to transform its existing Grayscale Ethereum Trust (ETHE) into an exchange-traded fund.
Additionally, Grayscale had previously revealed intentions to distribute units of the newly established Mini Trust to investors in the ETHE fund. Launched in 2017, the ETHE fund marked one of the initial institutional investment opportunities for Ethereum in its spot form.
According to reports, the Securities and Exchange Commission (SEC) has granted provisional go-ahead to at least three entities to launch spot Ethereum Exchange-Traded Funds (ETFs) starting from July 23.
Additionally, some prominent financial institutions such as BlackRock, Franklin, Bitwise, Invesco, Grayscale, and Fidelity have made adjustments to their S-1 forms for proposed Ethereum Spot ETFs. This action implies readiness for potential listing in the securities market. Furthermore, these firms have announced their management fees, signaling they are nearing completion of preparations for trading.
The fees charged by different companies can differ. For instance, BlackRock and Invesco Galaxy impose a fee of 0.25%, whereas Bitwise has unveiled a lower fee of 0.20% with a discount for managing up to $500 million in assets.
The Ethereum trust managed by Grayscale imposes a higher fee of 2.5%, while its mini ETF version comes with a reduced fee of only 0.25%. Franklin Templeton’s fee is the lowest at 0.19%, and Fidelity’s fee, which stands at 0.25%, will be waived until the end of 2024.
As a crypto investor, I’ve been keeping an eye on the latest developments with the various Ethereum ETFs. However, I was disappointed when I learned that the ProShares Ethereum ETF didn’t submit its Form 19b-4 application as early as some of its competitors. As a result, it looks unlikely that this fund will be among the eight to potentially get listed next week.
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2024-07-18 03:01