The SEC will direct the final S-1 filings for Ether ETFs on target on July 23.
The SEC will order the final S-1 filing for Ether ETFs on July 16, with the launch set for July 23. Invesco, Galaxy Set Fees at 0.25%, VanEyck, Franklin Templeton at 0.20% and 0.19% respectively. Analysts predict that Ether ETFs could attract $5 billion to $10 billion in new revenue.
The United States Securities and Exchange Commission (SEC) has issued final guidelines for asset managers ready to launch Ethereum exchange-traded funds (ETFs). According to Bloomberg analyst Eric Balchunas, the SEC wants issuers to file their completed S-1 filings by July 16, with the new Ether ETF's target launch date set for July 23.
The records should detail the management fees payable.
The move follows the SEC's approval of issuers' Form 19-B on May 23, making regulatory changes to allow crypto-based investment vehicles.
Now, asset managers are required to obtain approval for the first securities registration S-1 forms, a major step for the official launch of Ether ETFs.
A number of prominent financial institutions are vying for SEC approval and the opportunity to introduce Ether ETFs to the market. Notable names include BlackRock, Greyscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex and Franklin Templeton.
Firms have developed different Ethereum ETF fee structures.
Invesco and Galaxy set their management fees at 0.25%, slightly higher than VanEyck and Franklin Templeton, which disclosed fees of 0.20% and 0.19%, respectively.
However, these fees are significantly lower than the 2.50% management fees charged by Greyscale's existing Ethereum Trust.
Greyscale, which plans to launch a new spot Ethereum ETF, has yet to announce its new fee structure.
This competitive fee landscape is expected to benefit investors, making Ether ETFs an attractive option for those seeking exposure to Ethereum.
Lower fees can increase overall returns, especially in the long run, and attract a wider range of investors.
Ether EFF approval market impact
The SEC's approval process for Ether ETFs is expected to follow a similar course to Bitcoin ETFs. Analysts predict that Ether ETFs will receive strong interest from investors, attracting as much as $10 billion in new inflows in the months following their launch.
Tom Dunleavy, managing partner of crypto investment firm MV Global, noted that the success of Bitcoin ETFs, which has seen $15 billion in inflows, bodes well for the future of Ether ETFs. He estimates that Ether ETFs could see $5 billion to $10 billion in revenue.
The introduction of Ether ETFs is a major milestone in the cryptocurrency investment landscape. It represents a step towards the mainstream adoption and accessibility of digital assets, giving investors new opportunities to diversify their portfolios.
As the July 23 launch date approaches, all eyes will be on the SEC and asset managers vying for approval.
