Original｜Odaily Planet Daily
Author: jk
The U.S. Securities and Exchange Commission (SEC) has officially approved an exchange-traded fund (ETF) linked to the spot price of Ethereum. This decision marks another major development in the cryptocurrency market and provides investors with a new investment channel. The approval involves nine asset management companies, including BlackRock, VanEck, Franklin Templeton and Grayscale Investments, most of which have also launched Bitcoin spot ETFs earlier. Analysts believe that the launch of this new product will further promote the mainstreaming of cryptocurrencies while providing investors with more diversified investment options.
Previously, the document approved by the SEC in May was the 19 b-4 document, and the document officially approved this time was the S-1 document, which is the last step before the official launch of the offering and trading.
The 19 b-4 filing is primarily used for rule change applications from stock exchanges, such as a new ETF rule change. It is a formal filing with the SEC requesting approval for these rule changes or implementation of new rules.
Once submitted, the SEC reviews the proposal and makes it publicly available for comment on its website. The public can submit comments within a specified time period. The SEC will consider public comments and decide whether to approve or reject the rule change.
The S-1 filing is a registration statement that is primarily used for a companys initial public offering (IPO) or other securities offering. It is a document that a company submits to the SEC to provide detailed financial and business information in order to sell securities to the public. The document contains detailed information about the company, including financial statements, business overview, management team, risk factors, use of raised funds, etc. It also needs to disclose the various risks faced by the company, as well as the companys future plans and strategies.
Once filed, the SEC reviews the filing and may request additional information or amend the filing. Once the SEC deems the filing to be satisfactory, it declares it effective and the company can proceed with the securities offering.
It should be noted that the current submission documents do not include any pledge-related content.
Bloomberg analysts said that the Bitcoin ETF launched in January has been a huge success in the ETF market, attracting about $8 billion in assets. According to Morningstar Direct data, as of the end of June, these new products had nearly $38 billion in assets. But many analysts also believe that the performance of the newly launched Ethereum spot ETF will not be as good as Bitcoin, after all, the market value, trading volume, data, etc. are different.
Rates
As issuers have successively submitted S-1/A and other documents of spot Ethereum ETFs to the US SEC, the fees of 9 spot Ethereum ETFs have been announced. The specific data are as follows:
BlackRock’s spot Ethereum ETF has a fee of 0.25% (0.12% for the first $250 million), and the ticker is ETHA;
The Fidelity Spot Ethereum ETF has a fee of 0.25% (no management fee in 2024), and the ticker is FETH;
The Bitwise spot Ethereum ETF has a fee of 0.20% (0% for the first $500 million or the first 6 months), and the ticker is ETHW;
21 Shares Spot Ethereum ETF has a fee of 0.21% (0% for the first $500 million or first 6 months), and the ticker is GETH;
VanEck Spot Ethereum ETF has a fee of 0.20% (0% for the first $150 million or first 12 months), and the ticker is ETHV;
The Invesco Galaxy Spot Ethereum ETF has a fee of 0.25% and the ticker is QETH;
Franklin Spot Ethereum ETF has a fee of 0.19% (0% before January 21, 2025 or the first $1 billion), and the ticker is EZET;
Grayscale’s spot Ethereum ETF has a fee of 2.50% and its ticker is ETHE;
Grayscale’s Spot Ethereum Mini ETF has a fee of 0.25% (0.12% for the first $2 billion or first 12 months) and the ticker is ETH.
timeline:
Last November, BlackRock and Fidelity formally submitted an application for an Ethereum ETF to the US SEC;
In March, Fidelity formally filed its S-1 registration form;
In May, Grayscale withdrew its Ethereum ETF application;
On May 24, the SEC officially approved the 19 b-4 filing for the spot Ethereum ETF, but it still needs approval from the S-1 filing before trading;
In June, the SEC concluded its investigation into Ethereum 2.0;
On July 18, the SEC officially approved the ETF S-1 filing and it was approved for listing.
