BlackRock and other issuers have updated their S-1 filings for their Ethereum spot ETF, raising expectations for a July launch.
Applicants for seven spot Ethereum ETFs amended their registration statements with the SEC on June 21, raising hopes for a trading start in early July.
Franklin Templeton, VanEck, Invesco Galaxy, BlackRock, 21Shares and Fidelity filed updated S-1 registrations for the funds.
Grayscale filed an Amended S-3 Registration for the Ethereum Trust and a Supplemental Amended S-1 Statement for the Mini Ethereum Trust. Bitwise has not amended the Registration Statement.
Bloomberg ETF analyst Eric Balchunas continued to predict that July 2 would be the over/under date for the fund’s launch following recent filings, saying:
“Anyway, that’s basically the finish. Now the ball is in the SEC’s court.”
He also maintained his view that the Ethereum ETF is unlikely to attract more than 20% of the AUM raised by the Bitcoin ETF.
Fee disclosure
Franklin Templeton disclosed a 0.19% sponsor fee in updated filings. The company will waive fees on the first $10 billion in assets for six months. Meanwhile, VanEck has disclosed a similar 0.20% sponsor fee and plans to waive it for the first $1.5 billion in assets until an undisclosed date in 2025.
Balchunas believes lower fees will put pressure on BlackRock to announce sponsor fees of 30 basis points or less for funds. Notably, BlackRock and Fidelity have not yet disclosed sponsor fees for their ETFs.
Experts believe that BlackRock’s fees in particular will be a key factor that could intensify competition between companies. Balchunas said that aside from the launch date, asset manager fees were the most important omission.
According to analysts:
“(BlackRock’s) fee is the sun that the rest needs to orbit around.”
The launch of a spot Bitcoin ETF in January sparked a “fee war” among issuers, with each issuer competing to offer competitively low fees. Current spot Bitcoin ETF fees typically range between 0.19% and 0.39%, but Grayscale’s GBTC fees are 1.5% higher.
seed investment
Invesco Galaxy disclosed a $100,000 seed deal on June 17 in which a seed investor purchased 4,000 shares at $25 per share.
Grayscale has disclosed a $100,000 seed stock purchase 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 by purchasing 125,000 shares at $37.99 per share.
Meanwhile, BlackRock previously reported $10 million in seed funding for the ETF.
