Recently, major asset management firms such as BlackRock, VanEck, and Franklin Templeton have updated their filings with the SEC, indicating their optimism about the upcoming launch of Ethereum ETFs in July. These exchange-traded funds are expected to have initial investments ranging from $100,000 to $10 million, with competitive rates as low as 0.19%.
On June 21st, renowned companies like 21Shares, Grayscale, and Invesco Galaxy, along with the aforementioned firms, also made significant moves, further reinforcing confidence in the imminent availability of these new investment options in crypto assets. For instance, 21Shares stood out with initial seed sales totaling $340,739, while Invesco Galaxy made a contribution of $100,000. Additionally, Fidelity and BlackRock raised $4.7 million and $10 million, respectively.
The disclosure of fee structures has shed light on the competitive strategies employed by these entities. Franklin Templeton announced rates as low as 0.19%, with an exemption for assets up to $10 billion during the first six months. VanEck, on the other hand, set its fees at 0.20%, with an initial exemption for the first $1.5 billion in assets. Bloomberg analyst Eric Balchunas commented on the competitiveness of these fees, highlighting the pressure on BlackRock to keep fees below 30 basis points. This trend is likely to be followed for Ethereum ETFs.
Balchunas also predicts that the funds should be launched in early July, expressing confidence that the SEC will soon approve the revised requests. He stated, “The ball is in the SEC’s court to inform issuers of any final changes and effectiveness. We are holding the line with July 2 as our over/under launch date for ETH ETFs.”
Quinn Thompson, the founder of a hedge fund specializing in cryptocurrencies, believes that despite the initial focus on Ethereum, the long-term impact of ETH ETFs could be significantly broader. Thompson stated, “Over the past two years, the industry has favored BTC and SOL. ETH ETFs will force a major revaluation of the asset. Once BTC stabilizes, ETH will start to shine.” He also added, “Thanks for reminding me that I once called ETH spot ETFs ‘small potatoes.’ That was dismissive, and I take that back. I still think ETH will be lucky to get 20% of the assets that Bitcoin ETFs hold.”
Please note that the views and opinions expressed in this article, including those of the author and individuals mentioned, are for informational purposes only and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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