Author: Ben Strack, Casey Wagner, Blockworks; Translated by: Wuzhu, Golden Finance
We are at a historic moment — and no, I’m not talking about President Biden’s decision to drop out of the 2024 presidential race.
Another race is about to begin: the battle for U.S. spot Ethereum ETF assets.
Beyond the competition among issuers, the launch reflects history in the making. The first U.S. ETFs to directly hold bitcoin launched in January. Now, six months later, an Ethereum fund will represent another milestone.
Let’s review the road to approval of the Ethereum spot ETF:
December 2017: CME launches Bitcoin futures.
February 2021: CME launches Ethereum futures.
October 2021: U.S. securities regulators give the green light to an ETF that holds Bitcoin futures contracts.
June 2022: Grayscale Investments files a lawsuit with the SEC after the SEC refuses to convert GBTC into an ETF.
May 2023: Issuer submits Ethereum futures ETF application, then withdraws it.
July/August 2023: Ethereum futures fund applications resurface, with sources noting that the SEC is now ready to consider these products.
August 2023: Grayscale wins its lawsuit against the SEC, ultimately paving the way for approval of a Bitcoin ETF.
September 2023: Fund groups such as VanEck and 21Shares begin applying for spot Ethereum ETFs. BlackRock, the world's largest asset management company, will follow suit in November.
October 2023: Six Ethereum futures ETFs begin trading in the United States.
January 2024: The SEC approves a spot Bitcoin ETF in a landmark decision.
March 2024: Bitwise applies for a spot Ethereum ETF.
April 2024: Consensys sues the SEC, claiming the agency is attempting to regulate ETH as a security.
May 22, 2024: Cryptocurrency gains bipartisan support as the House of Representatives passes the FIT21 bill. On the same day, five members of Congress (three Republicans and two Democrats) wrote to SEC Chairman Gary Gensler, urging the SEC to allow a spot Ethereum ETF.
May 23, 2024: The SEC approves the 19b-4 proposals submitted by exchanges on which the planned ETH fund will trade. This comes after a change of stance that may have been politically motivated.
July 17, 2024: The fund issuer files what appears to be a final registration statement, filling out details such as the ETH ETF’s fees. People familiar with the matter note that they expect the SEC to deem these statements “effective” on June 22 (today).
July 18, 2024: Grayscale Investments announces a planned fee of 0.15% for its Ethereum Mini Trust, which is lower than the expected price point of its competitors.
July 19, 2024: Cboe notes in the filing that ETH ETFs from VanEck, Fidelity, Franklin Templeton, 21Shares, and Invesco/Galaxy will be available on July 23, “pending regulatory effectiveness.”
July 23, 2024: The U.S. spot Ethereum ETF is officially approved for listing and trading.
As far as we know, US spot ETH ETFs do not pledge their holdings, a feature that may deter some investors.
Still, industry watchers expect these funds to attract a significant amount of investor capital — a figure some put at around 15% to 30% of net inflows to U.S. spot Bitcoin ETFs ($17 billion in more than six months).
