Major Asset Managers Revise Ethereum ETF Proposals, Await SEC Approval
Summary:
Major asset managers such as VanEck, BlackRock, Grayscale, and Invesco Galaxy Digital have submitted revised Ethereum exchange-traded fund (ETF) proposals to the U.S. Securities and Exchange Commission (SEC). Fidelity has also filed a new form. The approval of the S-1 Registration Statements is one of the final steps before the funds can be listed on Wall Street exchanges. These funds are expected to debut in early July.
A number of major fund managers, including VanEck, BlackRock, Grayscale, and Invesco Galaxy Digital, have sent updated proposals for an Ethereum ETF (Exchange-Traded Fund) to the U.S. Securities and Exchange Commission (SEC). These revised proposals were submitted on June 21, subsequent to the Friday market close. Fidelity had also filed an updated S-1 form with the regulator earlier on the same day. The VanEck filing includes a 0.20% management charge for its Ethereum fund, comparable to its competitors like Franklin Templeton, who charge a 0.19% fee.
Meanwhile, BlackRock has not yet disclosed the management fee for its iShares Ethereum Trust (ETHA). Eric Balchunas, an analyst at Bloomberg, suggests that the fees disclosed in VanEck's filing could place some pressure on BlackRock to keep its fee beneath 30 basis points. Over the last few weeks, the Commission has received other amendments to filings. The SEC's approval of the S-1 forms is one of the final steps before the funds can be listed on Wall Street exchanges.
Balchunas anticipates that all these new funds will make their debut in the first week of July, just before the U.S. Independence Day holiday. In a related development, the SEC allowed, in May, significant asset manager firms to list and trade eight Ether ETFs. These firms include VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. Fidelity, in its updated filing, revealed that FMR Capital, a Fidelity affiliate, had committed $4.7 million at a price of $38 per share.
More recently, on June 19, Bitwise updated its ETF proposal to the SEC, including a possible $100 million investment from Pantera Capital at the ETF's trading debut. Hashdex, another player in the industry, is likewise seeking regulatory approval for an ETF that would combine Bitcoin and Ether. However, just a few weeks back, Hashdex decided to put aside its plans for a standalone Ether ETF.
Published At
6/22/2024 12:59:57 AM
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