BlackRock, other issuers update S-1 filing for spot Ethereum ETFs, raising expectations for July launch

Seven spot Ethereum ETF applicants amended their registration statements with the SEC on June 21, raising hopes of a trading start in early July.

Franklin Templeton, VanEck, Invesco Galaxy, BlackRock, 21Shares and Fidelity have filed updated S-1 registrations for their respective funds.

Grayscale filed an amended S-3 registration for the Ethereum Trust and an additional amended S-1 statement for the Mini Ethereum Trust. Bitwise did not amend its registration statement.

Bloomberg ETF analyst Eric Balchunas said he still expects the fund’s launch date to be July 2 following the latest filing.

“Anyway, that’s basically it. Now it’s the SEC’s turn.”

He also maintained that it is unlikely that an Ethereum ETF will capture more than 20% of the assets under management that a Bitcoin ETF has.

Fees are disclosed

Franklin Templeton disclosed a sponsorship fee of 0.19% in its latest filing, and will waive the fee for six months on the first $10 billion in assets, while VanEck similarly disclosed a sponsorship fee of 0.20%, and will waive the fee on the first $1.5 billion in assets until an unspecified date in 2025.

Balchunas believes that the low fees will put pressure on BlackRock to also keep its own fund sponsorship fees below 30 basis points. Notably, both BlackRock and Fidelity have yet to disclose their sponsorship fees for their ETFs.

Experts believe BlackRock’s fees, in particular, will be a key detail that could lead to increased competition between the two firms. Balchunas said the most significant missing item, other than the start date, is asset manager fees.

According to analysts:

“[BlackRock’s] The charge is the sun around which the rest of the spacecraft must orbit.”

The launch of spot bitcoin ETFs in January has highlighted a “fee war” between issuers as they compete to offer competitively low fees. Currently, spot bitcoin ETF fees range from 0.19% to 0.39%, while Grayscale’s GBTC charges a higher fee of 1.5%.

Seed Investments

Invesco Galaxy announced a $100,000 seed deal on June 17, with seed investors purchasing 4,000 shares at $25 per share.

Grayscale revealed that it had purchased $100,000 in seed shares for its Mini Ethereum Trust. On May 31, the sponsor purchased 10,000 shares at $10 per share.

Fidelity said its seed capital investor, FMR Capital, contributed $4.7 million to the trust on June 4, purchasing 125,000 shares at $37.99 per share.

Meanwhile, BlackRock previously reported putting $10 million in seed capital into its own ETF.

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Posted in: Ethereum, Cryptocurrency

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