On June 21, major asset management companies including Blackrock, Van Eck, Franklin Templeton, Grayscale Investments, Invesco Galaxy, 21 Shares, and Fidelity announced an updated S- for the Ethereum (ETH) spot exchange-traded fund (ETF). 1 A registration statement has been filed with the U.S. Securities and Exchange Commission (SEC).
The new filing includes more details on seed investments and fees, raising hopes that trading could begin soon.
Ethereum ETF Issuer Discloses Fees and Seed Investments
According to 21Shares' filings , 21Shares received approximately $340,739 from initial sales of seed generation baskets through 21Shares US LLC. By comparison, Invesco Galaxy's revised application lists a seed investment of approximately $100,000. In particular, major asset managers such as Fidelity and Blackrock attracted seed investments of $4.7 million and $10 million, respectively.
Additionally, some companies have begun to disclose the fees they will charge . Franklin Templeton sets its fees at 0.19%, with a six-month waiver for assets up to $10 billion. VanEck, on the other hand, sets its fees at 0.20%, with fees waived for the first $1.5 billion in assets. Bloomberg ETF analyst Eric Balchunas expressed his enthusiasm for the fees Grayscale would charge , calling these fees “very low.”
“[These low fees] are putting pressure on BlackRock to stay below 30bps at a minimum. For now, it appears that Ethereum’s fees will be lower or lower than Bitcoin,” Balchunas added .
Read more: Ethereum ETF explained: What is an Ethereum ETF and how does it work?
Stakeholders explained that S-1 approval is one of the final steps before a financial product begins trading. Balchunas maintained his prediction that the fund would be launched in early July .
“The ball is in the SEC’s court to notify issuers of final changes and their effectiveness (aka final approval). We are targeting July 2nd as the launch date for the Ethereum ETF,” Balqunas said .
Cryptocurrency hedge fund founder Quinn Thompson predicted that the Ether ETF could outperform expectations given the recent high interest in it. According to him, focusing on the initial influx may overlook the broader impact these products will have on digital assets .
“Over the past 24 months, the industry has flocked away from Ethereum and toward the Bitcoin (BTC) and SOL barbells, and as is often the case with the ‘ultimate asset class,’ the trend has been too much in one direction and then too much in the other. There is a tendency. Discussing the size of daily, weekly or monthly inflows is like seeing the trees without seeing the forest. The very existence of the Ethereum ETF will force a massive re-evaluation of the asset. “Once BTC stops falling, maybe sooner, Ethereum will start to shine,” he said .
Read more: How to invest in Ethereum ETF?
Nonetheless, Balchunas admitted he had previously looked down on the Ethereum ETF, but insisted he would be lucky to receive 20% of the inflows from the physical Bitcoin ETF .
“Thanks for reminding me that I once called the Ethereum spot ETF “small potatoes.” Looking back, it was such a careless statement, so I cancel it. That said, I still think Ethereum would be lucky to get even 20% of the AUM held by the BTC ETF. But we’ll see,” he wrote .
