SEC Issues Final Instructions for Ethereum ETFs, Targeting July 23 Launch
The United States Securities and Exchange Commission (SEC) has reportedly requested the final submissions of Form S-1 from asset managers by July 16, according to Bloomberg analyst Eric Balchunas, the SEC. These final submissions must detail the fees issuers plan to charge for their crypto funds. As the market anticipates the launch of these Ether ETFs, Ethereum (ETH) has seen a surge in the past 24 hours, gaining 3.69%. It is currently trading at $3,458.
This move follows the SEC’s approval on May 23 of issuers' 19-b forms, which proposed rule changes to permit crypto-based investment vehicles. Now, asset managers require approval for their initial securities registration S-1 forms. The SEC is reportedly targeting to launch the new ETFs on July 23.
Several leading financial institutions, including BlackRock, Grayscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton, are in the race to secure approval and launch their Ether ETFs. Addressing regulatory concerns, some issuers have decided to exclude staking from their Ether ETF plans. This decision aligns with the SEC’s focus on ensuring these new investment products meet regulatory standards.
Fees for these Ether ETFs will vary among the different issuers. Invesco and Galaxy have set their management fees at 0.25%, which is slightly higher than those of VanEck and Franklin Templeton, who have disclosed fees of 0.20% and 0.19%, respectively. These fees are notably lower than the 2.50% management fees currently charged by Grayscale’s Ethereum Trust. Although Grayscale has announced plans to launch a new spot Ether ETF, it has yet to disclose the associated fees.
