Spot Ethereum ETF: Cboe New Listing Confirms July 23 Launch Date

Several analysts and market observers have previously shared their optimism about the United States Securities and Exchange Commission (SEC) giving its final approval to spot Ethereum ETF trading by July 23. However, Cboe’s new listing has brought confirmation to that previous optimism.

Spot Ethereum ETF Trading on The Horizon

ETF Store President Nate Geraci highlighted CBOE’s new listing, adding that it’s “almost go time.”

The listings included spot Ethereum ETFs from Fidelity Investments, Franklin Templeton, Invesco, 21Shares, and VanEck. Their first day of trading was stated as July 23, reflecting a certainty that the approval that spot Ethereum ETF filers seek is coming as anticipated.

Cboe new listings…

It’s happening.

Almost go time. pic.twitter.com/V1wCcxYoCH

— Nate Geraci (@NateGeraci) July 19, 2024

To reach this point, these investment asset management firms have put in a lot of work and resources just to ensure that they comply with the Commission’s standards.

Recently, BlackRock, Franklin, Bitwise, Invesco, Grayscale, and Fidelity filed amended S-1 forms for their Ethereum ETFs, with the hope of a possible listing next week. The core detail in their individual filings was their management fee seeing that they had reached their final stages of preparing for trading.

Sponsor Fee War For Spot Ethereum ETFs

Spot Bitcoin ETF leader BlackRock capped its Ethereum ETF sponsor fee at 0.25%, corresponding with a 31% difference from Franklin Templeton‘s fee of 0.19%. BlackRock also pointed out that it could decide to waive all or a portion of the fee for a certain period. The fee is charged on a daily basis with an annualization and is due and payable on a quarterly basis.

Bitwise, also declared a 0.20% fee with an initial discount for 6 months for the first $500 million in assets. VanEck had earlier stated that it would completely waive the ETF fees for an unspecified time till 2025, or until the assets hit $1.5 billion. 21Shares wants a unitary sponsor fee equivalent to 0.21% of its Ethereum ETF.

All their management fees ended up falling within the range of 0.19% to 0.25%. However, Grayscale sent the entire crypto ecosystem into amusement when it announced its fee to be 2.5%, exactly 10X higher than the others. Geraci thinks this could be a major mistake that Grayscale is repeating again, speaking of GBTC. He criticized Grayscale for maximizing short-term revenue instead of playing the long-term game.

On the flip side, Grayscale compensated for this high fee by charging only 0.15% for its Grayscale Ethereum Mini Trust ETF.

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