Race for Ethereum spot ETFs heats up as issuers prepare for imminent launch

ETF issuers are making final preparations to launch ethereum-based spot products in the United States next week.

On July 18, ETF Store President Nate Geraci noted that potential eth spot ETF issuers had already received final S-1 forms. The S-1 form is the initial registration form for new securities that is required by the SEC for public companies.

Two months ago, “pretty much everyone thought they had no chance of approval,” he added, before predicting that the launch date could be Tuesday, July 23.

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It looks like *final* S-1s are now available from potential eth spot ETF issuers…

Two months ago, almost everyone thought that these had no chance of being approved.

Next step = launch (looks like Tuesday)!

– Nate Geraci (@NateGeraci) twitter.com/NateGeraci/status/1813697588245446987?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 17, 2024

eth ETFs prepare for the market

On July 18, Bloomberg ETF analyst James Seffart summarized the offerings of the nine spot ethereum ETFs expected to launch next week. What’s interesting to note is the fee structure: heavyweights BlackRock and Fidelity charge just 0.25% in fees for their yet-to-be-launched funds.

As an initial incentive, BlackRock is offering a cut for the first 12 months or $2.5 billion in assets raised for its iShares ethereum Trust (ETHA). Fidelity said it would waive fees on its FETH fund through the end of the year. Ark 21Shares and Bitwise are asking for 0.21% and 0.2%, respectively.

“Seven of the ten ETFs being launched will offer fee waivers, with some waiving the fee entirely within six to ten months,” Seyffart said, adding:

“This shows how competitive these issuers are expected to be, and it will be a battle to get assets.”

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Okay, everyone. Here are the details of the twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>#ethereum ETF that we expect to launch next week. We are only missing details for the Proshares ETF. 7 of the 10 funds have fee waivers. image.twitter.com/5v3QnHOeub

—James Seyffart (@JSeyff) twitter.com/JSeyff/status/1813693107214717181?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 17, 2024

There has been some concern about what will happen to Grayscale’s ethereum Trust given the mass exodus from its bitcoin fund, which has lost more than 50% of assets under management since it became a spot ETF.

Grayscale will also charge a 0.25% fee for its eth mini-fund, according to recent filings. The firm has stated that 10% of its ethereum Spot ETF will go towards establishing its ethereum Mini Trust, which will bring in $1 billion in seed funding.

Hodl Capital estimated that a similar exodus from Grayscale’s ETHE fund could represent as much as $10 billion in AUM.

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Can Grayscale replicate the… twitter.com/search?q=%24GBTC&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$GBTC Rate error with twitter.com/search?q=%24ETHE&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$eth?

If so, outflows of 50% to 60% are expected Just over $10 billion in assets under management https://t.co/EB8IXDGPg4 image.twitter.com/TFSzbnRvpZ

— HODL15Capital (@HODL15Capital) twitter.com/HODL15Capital/status/1813687283427754273?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 17, 2024

ethereum Price Outlook

ethereum prices are holding steady after a surge of over 10% over the past seven days. The asset was trading at just over $3,400 at the time of writing, having fallen from a 17-day high of $3,500 yesterday.

There may be a small increase if and when ETFs go live, but that is likely already priced in.

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