The ethereum ETF is scheduled to begin trading on Tuesday morning in US Eastern Time. Seven issuers, including Blackrock and Fidelity, have set fees ranging from 0.19% to 0.25%, while the fund fee for Grayscale, which will convert from a trust to an ETF, remains at 2.5%. Institutions predict that the ETF may attract 15 to 20 billion dollars in inflow in its first year of trading.
Half a year after the launch of the bitcoin spot ETF, it has become the second-largest cryptocurrency after bitcoin.$Ethereum (ETH.CC)$Also ushered in a spot ETF.
On Monday, July 22nd, Eastern Time, according to regulatory filings and announcements from relevant companies, the US Securities and Exchange Commission (SEC) officially approved several companies' applications for Ethereum spot ETF listing and trading.
Media reporters confirmed this official news, stating that the SEC has made the Ethereum spot ETF effective, with 424(b) forms being released one after another. Everything is ready, and the final step is to list at 9:30 am Eastern Time on Tuesday. Let the game begin.
According to the Cboe Global Markets website, Cboe Global Markets will start trading five Ethereum spot ETFs from Tuesday, July 23rd.
It is reported that the first batch of ETF issuers that directly invest in Ethereum includes: 21Shares, Bitwise Asset Management, BlackRock, Franklin Templeton, Fidelity Investments, VanEck and Invesco. Among them, Bitwise's Bitcoin spot ETF page is already activated.
Data provider Morningstar also added Grayscale Investments to the mix, and unlike the previous issuers, Grayscale will convert its existing Grayscale Ethereum Trust into an ETF, just like its Bitcoin Trust was converted into a Bitcoin ETF.
Morningstar pointed out that compared with the issuers of Bitcoin spot ETFs, this list of approved Ethereum spot ETF issuers is missing WisdomTree and Valkyrie. In addition, 21Shares, which previously teamed up with Ark Invest to issue a Bitcoin ETF, will now issue an Ethereum ETF on its own.
The following summary screenshot from Morningstar shows that, except for Grayscale, most of the Ethereum spot ETF issuers have set fees ranging from 0.19% to 0.25%. The Grayscale Ethereum Trust ETF will maintain its fee at 2.5%, but will waive the fee for assets under management up to the highest cumulative $2 billion for the first six months of trading.
When news broke last week that Wall Street institutions were planning to reduce fees for Ethereum ETFs, analyst James Seyffart pointed out: "Of the 10 ETFs that are launching, 7 offer fee reductions, some even have zero fees, ranging from six to ten months. This really shows how intense the competition these issuers are expecting. This will be a battle for asset gathering."
On the day when the news of the ETF listing came out, Ethereum rose and fell in intraday trading. In early Asian trading, it rose to $3,560, a high not seen since June 20. In early US stock trading, it fell below $3,440 and hovered around $3,490 at the close of trading, up about 0.2% for the day. On Tuesday, it fell in early Asian trading.
At the time of writing, ethereum was fluctuating around $3450, with a total market cap of over $414 billion, more than three times that of bitcoin's current market cap of over $1.33 trillion.
In May of this year, the SEC approved several exchanges' proposals for ethereum spot ETF trading, paving the way for ethereum ETF listing and trading in the United States. As mentioned earlier, some insiders believe that the launch of ethereum ETF may lead to a surge in market demand, causing ethereum supply shortages. In a situation of supply shortage, ethereum prices may be more sensitive to fund inflows, and locked-up ethereum may not be used to meet the new demands of ETFs, further exacerbating supply shortages and pushing up ethereum prices. Therefore, the listing of ethereum ETF may indicate a critical "turning point" before the surge in cryptocurrency prices.
Matt Hougan, the chief technology officer of Bitwise, predicted last month that ethereum spot ETF will receive a net capital inflow of $15 billion in the first 18 months after listing.
Media reports on Monday mentioned that research firm Steno Research predicts that the first year of Ethereum spot ETFs' introduction could attract $15 billion to $20 billion in fund flows, roughly similar to the inflow of Bitcoin spot ETFs in just seven months.
Editor/Somer