The US Securities and Exchange Commission (SEC) has now approved two spot Ethereum exchange-traded funds (ETFs) – Grayscale Ethereum Mini Trust and ProShares Ethereum ETF.
Both companies will be launching on the New York Stock Exchange’s Arca platform.
Latest ETH ETFs Await SEC’s Approval Of S-1 Filings
🗞️The U.S. Securities and Exchange Commission (SEC) has given the green light to two spot ETFs: Grayscale Ethereum Mini Trust and ProShares Ethereum ETF. These ETFs are set to be listed on the NYSE's Arca electronic trading platform, as revealed in a filing dated July 17.… pic.twitter.com/sQkBOxnL59
— CoinNewsSpan (@Coinnewspan) July 18, 2024
The SEC’s approval came via Form 19b-4 filing, allowing NYSE Arca to begin the trading of the funds. However, trading for the two aforementioned ETFs cannot start just yet. The final hurdle includes awaiting comments on the ETFs’ respective S-1 filings.
The Grayscale Ethereum Mini Trust represents an evolution from its previous Ethereum Trust (ETHE), a closed-end fund that has since transformed into an ETF. This transition highlights Grayscale’s forward-thinking strategy of adapting to investor needs and regulatory standards while also offering more accessible investment products.
RELATED: Ethereum Price Soars Past $3,500 Amid Spot Ether ETF Optimism
Grayscale’s $ETH Fund To Launch With $1 Billion In Assets
James Seyffart, a Bloomberg ETF analyst, noted the following regarding Grayscale’s converted ETHE fund and the implications on its mini ETF ($ETH) fund. He said, “NOTE: 10% of $ETHE will be automatically spun off and into $ETH. $ETHE currently has $10 billion in assets. So $ETH should essentially start it’s life with $1 billion in assets”.
NOTE: 10% of $ETHE will be automatically spun off and into $ETH. $ETHE currently has $10 billion in assets. So $ETH should essentially start it's life with $1 billion in assets
— James Seyffart (@JSeyff) July 17, 2024
While initially stating that he wasn’t sure on the mini ETF’s fee structure, Seyffart has since updated his followers. In a later post, he confirmed, “The Grayscale mini ETH filing is in. Will charge 0.25%”.
A total of ten spot Ethereum ETFs are poised for imminent listing, with 7 of those 10 offering initial fee waivers.
Similar to the launch of Bitcoin ETFs, fee waivers are used as a tool to entice investors. Grayscale continue to buck that trend. Its Ethereum ETF fee is listed at 2.5%, the same as its Bitcoin ETF.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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