Seven Ethereum ETF applicants, including Franklin Templeton, VanEck, and BlackRock, recently amended their registration statements with the SEC, increasing expectations of a trading launch in early July. Bloomberg ETF analyst Eric Balchunas predicted July 2 as a potential launch date for the funds and believes Ethereum ETFs may not attract as much assets under management as Bitcoin ETFs.
The updated filings revealed that Franklin Templeton and VanEck disclosed sponsor fees of 0.19% and 0.20% respectively, with both firms waiving fees for a certain amount of assets initially. Balchunas anticipates that BlackRock will announce sponsor fees below 30 basis points to stay competitive. However, both BlackRock and Fidelity have yet to disclose sponsor fees for their ETFs, which could have a significant impact on the market.
Invesco Galaxy, Grayscale, and Fidelity revealed details of their seed investments, with Invesco Galaxy disclosing a $100,000 seed transaction, Grayscale disclosing a $100,000 seed share purchase for its mini Ethereum trust, and Fidelity reporting a $4.7 million contribution to its trust from its seed capital investor. BlackRock had previously reported a $10 million seed funding for its ETF.
The launch of spot Bitcoin ETFs in January triggered a “fee war” among issuers, with fees ranging between 0.19% and 0.39%. Grayscale’s GBTC currently has a higher 1.5% fee. Analysts believe that BlackRock’s fee announcement will be a crucial detail that could lead to increased competition among the firms, with Balchunas stating that it is the most important missing detail other than the launch date.
Overall, the amended registration statements and disclosed fees and seed investments indicate that the launch of Ethereum ETFs is imminent, with market analysts closely monitoring developments and predicting potential outcomes based on the information provided by the applicants. Investors are eagerly anticipating the launch of these ETFs, which could provide new opportunities for exposure to the cryptocurrency market.
