The long-awaited launch of Ether exchange-traded funds (ETFs) in the US appears to be inching closer. The US Securities and Exchange Commission (SEC) has reportedly issued final instructions to asset managers vying for a piece of the crypto-based investment vehicle market.
According to Bloomberg analyst Eric Balchunas, the Commission is aiming for a swift launch. They have instructed issuers to submit their final S-1 filings, which detail the structure and operational aspects of the ETF, by July 16th. This paves the way for a potential launch date of July 23rd for these Ether ETFs. Notably, these final filings must also disclose the fees associated with each ETF.
Back in May, the SEC approved the 19b-4 form filed by issuers. This form proposes rule changes that would permit the creation of crypto-based investment vehicles. With that hurdle cleared, asset managers are now focused on securing approval for their individual S-1 registration statements.
Several major financial institutions are vying for a first-mover advantage in the Ether ETF market. BlackRock, Grayscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton are all reportedly in the running for approval to launch their respective Ether ETFs.
It’s worth noting that some issuers, like ARK Investments and Fidelity, have tweaked their Ether ETF plans in response to regulatory concerns. Staking, a process by which cryptocurrency holders can earn rewards for validating transactions on a blockchain network, has been removed from their proposals.
Investors considering these upcoming Ether ETFs should be aware of the varying fee structures. Invesco and Galaxy have set their management fees at 0.25%, slightly higher than VanEck and Franklin Templeton’s offerings, which come in at 0.20% and 0.19%, respectively. For comparison, Grayscale’s current Ethereum Trust charges a significantly steeper management fee of 2.50%. While Grayscale plans to launch a new spot Ether ETF, details regarding its fee structure remain undisclosed.
Analyst Predictions
The SEC’s approval process for Ether ETFs is expected to mirror the approach taken with Bitcoin ETFs earlier this year. Analysts are optimistic about investor interest, predicting that these Ether ETFs could attract up to $10 billion in new inflows during the initial months following launch. Tom Dunleavy, a managing partner at crypto investment firm MV Global, previously shared his bullish outlook with Cointelegraph, stating, “We saw $15 billion in flows for Bitcoin. I think we’re probably going to see $5 billion to $10 billion for Ethereum.”
As of this writing, the price of Ether is experiencing a surge, currently trading at $3,394, reflecting a 6.1% increase.
