The US Securities and Exchange Commission (SEC) has given the green light for spot Ether exchange-traded funds (ETFs) to commence trading in the United States on July 23. This approval signifies the final step necessary for the trading of these funds on their respective stock exchanges, such as the Nasdaq, New York Stock Exchange, and Chicago Board Options Exchange.
BlackRock, Fidelity, Grayscale, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy are among the successful issuers of these ETFs. This milestone comes about two months after the SEC approved their 19b-4 applications, marking a significant regulatory change that permits the listing and trading of spot Ether ETFs on these platforms.
Specifically, the iShares Ethereum Trust, issued by BlackRock, will be listed on the Nasdaq. At the same time, the Grayscale Ethereum Trust will be featured on the New York Stock Exchange.
Notably, all the spot Ether ETFs, excluding the Grayscale Ethereum Trust, will charge a base fee ranging from 0.15% to 0.25%. However, Fidelity, 21Shares, Bitwise, Franklin, and VanEck will suspend fees for their respective spot Ether ETFs until a certain period ends or until their products reach a specified limit in net assets. Moreover, the Grayscale Ethereum Mini Trust will also waive fees for the initial six months or until it hits $2 billion in net assets, whichever comes first.
Interestingly, the approval of these ETFs coincided with US President Joe Biden’s withdrawal from the 2024 election, an event regarded as a “win for crypto assets” by eToro market analyst Josh Gilbert. Analysts anticipate that these spot Ether ETFs will attract between 10% to 20% of the inflows that spot Bitcoin ETFs have garnered since their launch approximately six months ago.