Here we are, all the managers of crypto funds listed on the stock exchange have updated their S-1 forms and published the details regarding the trading fees for the spot Ethereum ETF.
This new investment tool will be officially launched on the markets starting from July 23, where the SEC has already formalized the start of trading for Grayscale Mini Trust and ProShares.
The investors are buzzing with excitement for the highly anticipated event and are trying to figure out where the price of the crypto will go in the first few hours after the launch.
Let’s see all the details below.
Start of trading for spot ETFs on Ethereum on July 23
Everything is ready for the official launch on the markets of the spot Ethereum ETF, after the asset managers published the fees of the new crypto funds.
After an initial approval by the SEC in May, where various managers submitted the 19b-4 forms, here come the S-1 filings as well.
As reported on Monday by the good Eric Balchunas, ETF Analyst for Bloomberg, the expected launch date for the start of trading is Tuesday, July 23.
Even Nate Geraci, president of ETFstore, had hypothesized a launch of Ethereum ETFs next week, seeing the insiders finalize the preparations.
Update: Nate's instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024
As the hours go by, the chances of seeing the Ether crypto ETF listed on US exchanges are giving way to certainties.
Yesterday the SEC made official the listing of the Grayscale Mini Trust and ProShares funds on July 23 on the NYSE Arca market.
It therefore now seems definitive that from Tuesday onwards (the other ETFs could be listed in the following days) the spot Ethereum ETFs will be live.
The launch of these investment funds represents a great milestone for the entire cryptographic ecosystem, which can celebrate the entry of a second crypto after Bitcoin into the pantheon of the gods.
The ETF markets indeed allow to “institutionalize” such a controversial asset like ETH, making it available to investors through safe and guaranteed trading venues.
The crypto fund managers complete the latest S-1 filings and announce their fees for trading spot Ethereum ETFs
Yesterday, there was the latest round of updates to the S-1 forms for the crypto fund managers tasked with handling the orders of the Ethereum ETF, which revealed the details about the respective fees.
21Shares was the last asset manager to file the final version of the document with the Securities and Exchange Commission, announcing a fee of 0.21%.
The largest issuer of ETP in the world is trying to offer a competitive service compared to other financial institutions.
This, whose ticker for the Ethereum ETF will be CETH, has however declared that it will waive the “sponsor fee” for the first 6 months or upon reaching 500 million dollars in volumes.
All this says a lot about the fact that 21Shares believes that the inflows for this new crypto fund will be about half of those recorded on Bitcoin.
In fact, for the BTC ETF, the same manager had offered a fee waiver for the first billion dollars of volumes in 6 months, which is double compared to ETH.
NEW: 21Shares Ether ETF fee will be 0.21% (terrordome in effect) and the ticker is $CETH, as per their just filed final S-1 (they are all due today so expecting more throughout day) pic.twitter.com/stwpdkB0VR
— Eric Balchunas (@EricBalchunas) July 17, 2024
In the financial market, the terms “bull” and “bear” are often used to describe market trends. A “bull” market is characterized by rising prices, while a “bear” market is marked by falling prices. Investors need to understand these terms to make informed decisions.
All other asset managers have also published their strategies revealing the fees of their Exchange-Traded Fund.
BlackRock, leader in the sector and a point of reference for other managers, has offered through its iShares range a “starting fee” of 0.12%, with a “post waiver fee” of 0.25%.
Same commissions for Grayscale Mini Trust, which on July 23 will already start with 1 billion dollars under management since 10% of the Grayscale Trust (10 billion under management) will be automatically converted into the new product.
Invesco, after obviously the Grayscale Trust which has very high fees, seems to be the least economical fund with costs equal to 0.25% pre and post waiver.
According to Franklink Templeton, VanECK, Bitwise, 21shares, and Fidelity, the trading of their Ethereum ETFs will be subject to a “starting fee” of 0%.
In the following months (6 or 12) they will adjust with a commission that orbits around 0.2%.
Prediction of the price of the crypto ETH at the launch of the ETFs on Ethereum
As the fees are now known, everyone is wondering where the trading volumes will flow for the launch of the Ethereum spot ETFs, and especially how the crypto ETH will move.
We can roughly believe that BlackRock, VanEck, Fidelity, and Grayscale will be the asset managers that receive the most trading orders, based on the history of Bitcoin ETFs. However, there are no confirmations of any kind, and it will be the investors themselves who decide which fund to park their assets in.
As for the price action of Ethereum at launch, we can make some considerations together: first of all, the only certain thing is that there will be a lot of volatility, both in the bear and bull directions.
Generally, these highly anticipated events lead to attempts of market manipulation, fake movements, and unusual chart patterns.
Taking a look at the forecasts made by the same fund managers, we notice how Bitwise predicted an ETH price of 5,000 dollars post launch.
JUST IN: Bitwise executive states Ethereum $ETH will hit $5,000 after its ETF launch pic.twitter.com/b6EZQBhExk
— BlockNews.com (@blocknewsdotcom) July 17, 2024
The more bear traders believe instead that the conversion of Grayscale investors (from Trust to mini ETF) will lead to a decline in the crypto asset’s prices.
In reality, it seems unlikely that the Grayscale sell-offs will have the same impact as the listing of Bitcoin ETFs, where the crypto was subject to the manager’s sales for 2 weeks.
In this case, in fact, the difference in price (premium/discount) on the NAV is very low, equal to 1.11%. Therefore, investors are not particularly incentivized to move from the Trust. At the launch of the Bitcoin ETFs, the discount on the NAV was instead 10% and had motivated many fund holders to sell their shares and move to more convenient products.
We do not expect a heavy wave to the downside for Ethereum in the early hours of trading on July 26.
We can roughly assume that initially ETH will remain in the marco range of 3,000-4,000 dollars, without hinting at particular runs towards either of the two extremes.
After an initial graphic pattern of “sell the news”, the prices of the crypto should theoretically rise above the starting point, leaving room for wild speculations.
In any case, in the following months, we expect a strong rise in the price of Ethereum, which thanks to the ETFs could be projected towards new all-time highs.
