After a long period of speculation and uncertainty, ethereum spot ETFs (exchange-traded funds) will officially begin trading next week, on Tuesday, July 23, 2024. This important development was announced by the Chicago Board Options Exchange (CBOE).
Five ethereum Spot ETFs to Launch on CBOE Next Week
On Friday, July 19, the Chicago Board Options Exchange aware New issuance notifications, revealing the launch of highly anticipated Ether exchange-traded funds. The exchange stated that five spot ethereum ETFs, including Fidelity (FETH), VanEck (ETHV), 21Shares ((CETÉ)Invesco (QETH) and Franklin Templeton (EZET) are expected to launch next Tuesday.
Each CBOE notice stated:
We are pleased to announce that one (1) exchange-traded product (“ETP”) will be listed on Cboe and begin trading as a new issue on July 23, 2024, pending regulatory effectiveness.
The announcement aligns with the latest projection in the long list of predictions from Bloomberg ETF expert Eric Balchunas, who proposed a possible launch date of July 23, 2024. This came after the U.S. Securities and Exchange Commission (SEC) reportedly asked issuers to submit their final S-1 filings.
The commission had yet to approve S-1 forms for issuers to register their spot ethereum ETFs for public sale. However, it is worth mentioning that the SEC approved eth ETF issuers’ Forms 19b-4 in May 2024.
Additionally, most eth ETF issuers have disclosed management fees for their funds and most have either eliminated or temporarily discounted them. It would be interesting to see how these fees influence market share distribution once spot ethereum ETFs start trading.
Notably, asset management giant BlackRock intends to charge a 0.25% management fee for its spot eth ETF, ETHA, according to its final S-1 registration statement. However, the firm revealed its intention to reduce the fee to 0.12% during the fund’s initial launch period, until the ETF has been operational for 12 months or reaches $2.5 billion in net assets.
eth price at a glance
The announcement of the ethereum spot ETF had little impact on the price of Ether, which seems to be already priced in. At the time of writing, the price of eth is hovering around $3,485, reflecting a 2% increase over the past 24 hours.
Capital inflows into ethereum spot ETFs are expected to positively influence the price of the cryptocurrency and possibly the broader market. This projection is not too far-fetched, considering the apparent impact of spot ETFs on the value of bitcoin so far in 2024.
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The price of ethereum on the daily timeframe | Source: ETHUSDT chart on x/5W5ArPFh/" target="_blank" rel="noopener nofollow">TradingView
Featured image from iStock, chart from TradingView
