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- SEC mandates final S-1 filings for Ether ETFs by July 16, launch set for July 23.
- Invesco, Galaxy set fees at 0.25%; VanEck, Franklin Templeton at 0.20% and 0.19% respectively.
- Analysts predict Ether ETFs could attract $5 billion to $10 billion in new inflows.
The United States Securities and Exchange Commission (SEC) has issued final directives to asset managers poised to launch Ethereum exchange-traded funds (ETFs). As reported by Bloomberg analyst Eric Balchunas, the SEC requires issuers to submit their finalized S-1 filings by July 16, with a targeted launch date for the new Ether ETFs set for July 23.
The filings must detail the management fees that will be charged.
This move follows the SEC’s approval on May 23 of issuers’ 19-b form, which proposed rule changes to permit crypto-based investment vehicles.
Now, asset managers are required to obtain approval for their initial securities registration S-1 forms, marking a significant step toward the official launch of Ether ETFs.
Several prominent financial institutions are competing for SEC approval and the opportunity to introduce Ether ETFs to the market. Notable names include BlackRock, Grayscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton.
Firms have set varying Ethereum ETF fee structures
Invesco and Galaxy have set their management fees at 0.25%, slightly higher than those of VanEck and Franklin Templeton, which have disclosed fees of 0.20% and 0.19%, respectively.
However, these fees are considerably lower than the 2.50% management fees charged by Grayscale’s existing Ethereum Trust.
Grayscale, which plans to launch a new spot Ethereum ETF, has yet to disclose its new fee structure.
This competitive fee landscape is expected to benefit investors, making Ether ETFs an attractive option for those looking to gain exposure to Ethereum.
Lower fees can enhance overall returns, particularly in the long term, and are likely to attract a broad base of investors.
Potential market impact of Ether ETFs’ approval
The SEC’s approval process for Ether ETFs is anticipated to follow a trajectory similar to that of Bitcoin ETFs. Analysts predict that Ether ETFs could draw substantial interest from investors, potentially attracting up to $10 billion in new inflows in the months following their launch.
Tom Dunleavy, a managing partner at crypto investment firm MV Global, has suggested that the success of Bitcoin ETFs, which saw $15 billion in flows, indicates a promising future for Ether ETFs. He estimates that Ether ETFs could see inflows ranging between $5 billion and $10 billion.
The introduction of Ether ETFs marks a significant milestone in the cryptocurrency investment landscape. It represents a step toward greater mainstream acceptance and accessibility of digital assets, providing investors with new opportunities to diversify their portfolios.
As the July 23 launch date approaches, all eyes will be on the SEC and the asset managers vying for approval, eager to see the impact of these innovative investment products on the market.