SEC Chair Gary Gensler recently discussed the smooth progression of the Spot Ethereum ETF approval process. Speaking at the Bloomberg Invest Summit, Gensler highlighted the ongoing work with issuers on their S-1 filings.
Quick Take
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SEC Chair Gary Gensler has stated that the approval process for Spot Ethereum ETFs is progressing smoothly, with the agency working closely with issuers on their S-1 filings.
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VanEck has introduced a zero-fee structure for its Ethereum ETF until 2025 or until the fund’s assets reach $1.5 billion.
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Franklin Templeton plans a competitive 0.19% fee, highlighting a strategic approach to gain a competitive edge in the ETF market.
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Industry experts anticipate that the second crypto-based ETF in the U.S. will officially launch in July, following the successful approval process.
SEC Readying for Official Spot Ethereum ETFs to Launch in July?
These filings must be approved before the investment products can begin trading. Many experts anticipate the second crypto-based ETF in the U.S. to officially launch in July.
During his appearance before the US Senate Appropriations Subcommittee on Financial Services, Gensler reiterated that individual issuers are progressing through the registration process smoothly. He envisions that the process will conclude over the summer, paving the way for the launch of these ETFs.
VanEck's Zero-Fee Strategy
According to a report on Watcher Guru, VanEck has filed Form-8A for its spot Ethereum ETF, with many analysts predicting a July 2 launch. Interestingly, VanEck announced it would waive its ETF fees, a move aimed at gaining an early competitive edge. This zero-cost structure is set to last until 2025 or until the fund’s assets hit $1.5 billion, after which a 0.20% fee will be imposed.
Franklin Templeton and BlackRock's Fee Structures
Franklin Templeton also disclosed its fee structure early, planning a 0.19% fee for its spot Ethereum ETF. Eric Balchunas, Bloomberg’s ETF analyst, noted that issuers rarely reveal their fees before launch. However, he emphasized the significance of BlackRock’s fee structure, which will likely set the standard for others.
Analysts Predict Ethereum ETFs May Underperform Bitcoin ETFs
Analysts from Bernstein and JPMorgan predict that Ethereum ETFs will see lower demand compared to Bitcoin ETFs. The absence of a staking feature in Ethereum ETFs is a contributing factor. Nonetheless, the approval of these ETFs is expected to attract significant inflows, potentially impacting the market positively.
ETH/USDT price chart | Source: KuCoin
Despite the recent pullback in crypto markets, the structural adoption cycle for Ethereum remains intact. The impending launch of spot Ethereum ETFs and ongoing institutional interest suggest a bright future for Ethereum. Analysts predict that the introduction of these ETFs could lead to significant market movements, potentially driving Ethereum’s price upward.
Inflation in Ethereum Supply Since The Merge
Ethereum’s supply has seen an inflationary trend since The Merge in 2022, exacerbated by the Dencun upgrade in March. This upgrade introduced several Ethereum improvement proposals, including EIP-4844, which reduced fees for block data on Ethereum layer-2 networks but led to increased supply.
Conclusion
The approval process for Spot Ethereum ETFs is progressing smoothly under SEC Chair Gary Gensler’s oversight. With anticipated launches in July, the market is poised for significant developments. VanEck’s strategic zero-fee initiative and Franklin Templeton’s competitive fee structure highlight the growing competition in the ETF space. While Ethereum ETFs are expected to see lower demand than their Bitcoin counterparts, the overall market sentiment remains positive. Investors and traders alike are eagerly watching these developments, anticipating their potential impact on the cryptocurrency market.
