According to CryptoPotato, ETF issuers are finalizing preparations to launch spot Ethereum-based products in the United States next week. On July 18, ETF Store president Nate Geraci noted that the final S-1 forms were submitted by prospective spot ETH ETF issuers. The Form S-1 is the initial registration form for new securities required by the SEC for public companies. Geraci mentioned that two months ago, the approval of these ETFs seemed unlikely, but now the launch date is anticipated to be Tuesday, July 23.
On July 18, Bloomberg ETF analyst James Seffart provided a summary of the offerings from the nine spot Ethereum ETFs expected to begin trading next week. The fee structure is a notable aspect, with major players like BlackRock and Fidelity charging just 0.25% in fees for their upcoming funds. BlackRock is offering a fee reduction for the first 12 months or until $2.5 billion in assets are gathered for its iShares Ethereum Trust (ETHA). Fidelity will waive fees for its FETH fund until the end of the year. Ark 21Shares and Bitwise are asking for 0.21% and 0.2%, respectively. Seffart highlighted that seven of the ten ETFs launching will have fee waivers, some waiving fees completely for six to ten months, indicating a highly competitive environment among issuers.
There is concern about the future of Grayscale’s Ethereum Trust, given the significant outflows from its Bitcoin fund, which lost more than 50% of assets under management since converting to a spot ETF. Grayscale will charge a 0.25% fee for its mini ETH fund, according to recent filings. The firm has stated that 10% of its spot Ethereum ETF will establish its Ethereum Mini Trust, providing $1 billion in seed funding. Hodl Capital estimated that a similar exodus from Grayscale’s ETHE fund could result in as much as $10 billion in assets under management.
Ethereum prices have remained stable following a more than 10% increase over the past seven days. The asset was trading just over $3,400 at the time of writing, having fallen from a 17-day high of $3,500 the previous day. There may be a slight increase in prices if and when the ETFs go live, but it is likely that the current prices have already factored in this development.
