Institutions in the US that have applied to issue Ethereum (ETH) Exchange-Traded Funds (ETFs) recently submitted their S-1 applications to the Securities and Exchange Commission (SEC) on June 21. This move has led many to believe that the launch of ETH ETFs is imminent, with some speculating that they could be available as early as the first week of July, just before Independence Day celebrations in the US.
The SEC had previously approved the initial round of applications in the form of 19b-4 filings from various financial institutions. Following this approval, these institutions were asked to provide further clarification by the SEC before submitting their S-1 applications, which they have now done. The SEC will now review these applications, and once approved, the financial institutions will be able to start issuing their ETFs, which will then be launched on Wall Street exchanges.
Prominent financial institutions such as VanEck, Grayscale, BlackRock, Invesco Galaxy Digital, Franklin Templeton, Fidelity, 21 Shares, and more have all submitted their S-1 filings. Among those who have already submitted their applications, details about the management fees for their ETFs have been disclosed. For example, VanEck has stated that it will charge investors a fee of 0.20%, while Franklin Templeton’s fees are around 0.19%. The fees charged by the other institutions are yet to be revealed.
When asked about the timeline for knowing the fees charged by these ETF providers, Bloomberg analyst Eric Balchunas suggested that it could be revealed sometime next week. He also commented on the fee structure of BlackRock in comparison to its competitors, VanEck and Franklin Templeton, stating that there is pressure on BlackRock to keep its fees below 30 basis points.
In addition to fee information, BlackRock’s filing disclosed a seeding of $10 million, while Fidelity’s application revealed an investment of $4.3 million offered by FMR Capital at $38 per share. Bitwise, in its updated filing from June 19, mentioned that it could receive investments of up to $100 million from Panthera Capital when its ETF is launched.
Overall, the submission of S-1 applications by these financial institutions marks a significant step towards the potential launch of Ethereum ETFs in the US market. Investors and crypto enthusiasts are eagerly awaiting further developments in this space, as the approval and availability of ETH ETFs could have a notable impact on the cryptocurrency market and traditional financial sectors. Stay tuned for more updates as the SEC reviews these applications and the ETF providers prepare for the launch of their respective products.
