The Ethereum spot ETF has finally been approved by the U.S. Securities and Exchange Commission (hereinafter referred to as the U.S. SEC), marking a milestone for Ethereum digital assets!
At 9:30 a.m. on July 23, 2024, Eastern Time, nine Ethereum spot ETFs were officially launched for trading on the U.S. securities market. They are:
1. Chicago Board Options Exchange (hereinafter referred to as CBOE Exchange):
21Shares Core Ethereum ETF (ticker: CETH)
Fidelity Ethereum Fund (ticker: FETH)
Franklin Ethereum ETF (ticker: EZET)
Invesco Galaxy Ethereum ETF (QETH)
VanEck Ethereum ETF (ticker ETHV)
2. Nasdaq:
BlackRock's iShares Ethereum Trust (ticker: ETHA)
3. NYSE's Arca:
Grayscale Ethereum Mini Trust (ticker ETH)
ProShares Ethereum ETF (ticker: EETH)
Bitwise Ethereum ETF (ticker ETHW)
In addition, the U.S. Securities and Exchange Commission also approved Grayscale to convert Grayscale Ethereum Trust (trading code ETHE) into Ethereum spot ETF trading.
The above-mentioned Ethereum spot ETF was open for trading for about 2 hours on the first trading day, with a total transaction volume of approximately US$434 million. Among them, the Grayscale Ethereum Trust (trading code ETHE) had the highest transaction volume, with an inflow of US$177.2 million; the 21Shares Core Ethereum ETF (trading code CETH) had the lowest transaction volume, with only US$4.69 million.
Media reports said that Bloomberg ETF analyst Eric Balchunas said that 15 minutes after the US Ethereum spot ETF started trading, the total transaction volume reached 112 million US dollars. Compared with normal ETF issuance, this is a huge number, but it is only about half of the first-day trading volume of the US Bitcoin spot ETF.
The opening price of VanEck Ethereum ETF (trading code ETHV) on the first day of listing reached $50.06, the highest among the first batch of officially listed Ethereum spot ETFs; Grayscale Ethereum Mini Trust (trading code ETH) had the lowest opening price of only $3.26. Due to its low share price, it has become the Ethereum spot ETF with the most transactions. The average price of other Ethereum spot ETFs is about $20 to $30.
However, after the Ethereum spot ETF began trading, the Ethereum digital asset ETH rose slightly, but the performance was flat. As of 00:00 on July 24, 2024 (Singapore time), ETH rose 0.46% that day, with a market value of approximately US$3,455.2.
What is the difference between the newly listed Ethereum spot ETF?
Ethereum spot ETFs in the United States are all initiated by asset management companies. Qualified custodians hold spot ETH and rely on professional market makers to create and redeem shares.
However, the fees of various Ethereum spot ETFs vary slightly, but in actual transactions, most ETFs may waive fees or provide discounts on fees. The actual input fees of retail traders trading ETFs may also differ from the discounts given by the selected securities brokers.
The following is the basic rate of Ethereum spot ETF based on public information:
21Shares Core Ethereum ETF（CETF）：0.21%
Fidelity Ethereum Fund (FETH): 0.25%, no management fee in 2024
Galaxy Ethereum ETF（QETH）：0.25%
Franklin Ethereum ETF (EZET): 0.19%, fee waived on first $10 billion in assets until January 31, 2025
VanEck Ethereum ETF（ETHV）：0.2%
Grayscale Ethereum Mini Trust (ticker ETH): 0.15%
ProShares Ethereum ETF (ticker: EETH): 1.33%
Bitwise Ethereum ETF (ETHW): 0.2%, 0% for first $500 million or first 6 months
Grayscale Ethereum Trust (ETHE): 2.5%
BlackRock's iShares Ethereum Trust (ETHA): 0.25%
Overall, the first batch of U.S. Ethereum spot ETF issuers listed and about to be listed on the U.S. securities market have maintained fees for their upcoming products at around 0.25%. The highest fee is charged by Grayscale, which sets its fee at 2.5%, which is 10 times the fee of most other Ethereum spot ETF issuers.
Are the ETH held by the 5 Ethereum spot ETFs involved in staking?
No one will participate in the pledge.
According to Cointelegraph.com, it is reported that earlier in 2024, Ethereum spot ETF initiators such as Fidelity, BlackRock, and Franklin Templeton sought approval from the U.S. Securities and Exchange Commission (hereinafter referred to as the U.S. SEC) to increase collateral in Ethereum spot ETFs, but the U.S. SEC rejected these requests.
Cointelegraph.com learned from anonymous insiders who participated in the staking negotiations that the reason for rejecting the staking request is that it often takes several days to withdraw ETH from the beacon chain, but as an ETF issuer, timely redemption of ETF shares in exchange for fund assets is a requirement that must be met.
Welcome to the new era of blockchain digital assets
Matt Hougan, Chief Investment Officer of Bitwise, once said in an interview with the media: "We have now fully entered the ETF era of blockchain digital assets. Investors can now enter about 70% of the digital asset market through low-cost ETFs."
"As early as 2021, we took the lead in applying for an Ethereum ETF. We have long believed that investors should be exposed to Ethereum through tools they find convenient and familiar." Kyle DaCruz, head of digital assets at VanEck, once said: "If BTC is digital gold, then Ethereum is an open source application store and a gateway to thousands of applications that utilize blockchain technology."
Research firm Steno Research has predicted that an Ethereum spot ETF listed on the U.S. securities market could see inflows of $15 billion to $20 billion in its first year, which is roughly equivalent to the inflows of the U.S. Bitcoin spot ETF in seven months.
