Spot Ethereum ETFs to Begin US Trading on July 23
According to Cointelegraph: Spot Ether (ETH) exchange-traded funds (ETFs) have been given the final approval to begin trading in the United States on July 23. This approval is expected to bring billions of dollars into the Ethereum ecosystem.
The United States Securities and Exchange Commission (SEC) approved the final S-1 registration statements on July 22, paving the way for their launch on various stock exchanges, including the Nasdaq, New York Stock Exchange (NYSE), and Chicago Board Options Exchange (CBOE).
The approved spot Ether ETF issuers include:
BlackRock
Fidelity
21Shares
Bitwise
Franklin Templeton
VanEck
Invesco Galaxy
The BlackRock-issued iShares Ethereum Trust will be listed on the Nasdaq, while the Grayscale Ethereum Trust will be listed on the NYSE.
All spot Ether ETFs except the Grayscale Ethereum Trust will offer a base fee between 0.15% and 0.25%. However, several issuers, including Fidelity, 21Shares, Bitwise, Franklin, and VanEck, will waive fees for their spot Ether ETFs until a set time period ends or their products reach a certain amount in net assets. The Grayscale Ethereum Mini Trust will also waive fees for the first six months or until it reaches $2 billion in net assets.
Impact on Crypto Market
The approval of spot Ether ETFs coincides with President Joe Biden's withdrawal from the 2024 election. This move was described as a "win for crypto assets" by eToro market analyst Josh Gilbert. Gilbert noted that as Trump stays ahead in the election odds, crypto assets will likely price in his victory.
Industry analysts predict that the spot Ether ETFs will capture between 10% to 20% of the flows seen by spot Bitcoin ETFs since their launch over six months ago.
The launch of spot Ether ETFs marks a significant milestone for the Ethereum ecosystem, potentially attracting substantial capital inflows and boosting the broader crypto market. As the landscape continues to evolve, investors will be closely watching the performance and impact of these new financial products.
