Ethereum ETF Applicants Update Registration Statements with SEC, Launch Expected in Early July

Seven spot Ethereum ETF applicants have made significant moves towards a trading launch in early July, amending their registration statements with the SEC on June 21. This development has sparked increased expectations among investors and analysts.

Leading financial firms such as Franklin Templeton, VanEck, Invesco Galaxy, BlackRock, 21Shares, and Fidelity have all submitted updated S-1 registrations for their respective funds. Additionally, Grayscale has submitted an amended S-3 registration for its Ethereum Trust and an additional amended S-1 statement for its mini Ethereum Trust. However, Bitwise did not make any amendments to its registration statement.

Bloomberg ETF analyst Eric Balchunas has set July 2 as an over/under date for the launch of these funds, stating that the “ball is in the SEC’s court now.” He also predicts that Ethereum ETFs are unlikely to attract more than 20% of the Assets Under Management (AUM) that Bitcoin ETFs have attracted.

In terms of fees, Franklin Templeton disclosed a 0.19% sponsor fee in its updated filing, with plans to waive the fee for the first $10 billion in assets for six months. VanEck disclosed a similar 0.20% sponsor fee, which it intends to waive for the first $1.5 billion in assets until an unspecified date in 2025. Balchunas believes these low fees will put pressure on BlackRock to announce sub-30 basis point sponsor fees for its fund.

Seed investments have also been disclosed by some of the firms, with Invesco Galaxy, Grayscale, and Fidelity all revealing significant transactions. Invesco Galaxy reported a $100,000 seed transaction on June 17, while Grayscale and Fidelity disclosed similar investments for their respective trusts.

Overall, the developments in the Ethereum ETF space are generating excitement among investors and analysts, with the launch of these funds expected to bring increased competition and potentially lead to a “fee war” similar to what was seen with spot Bitcoin ETFs earlier this year. Stay tuned for further updates as the launch date approaches.