The first ETFs (exchange-traded investment funds) on spot Ethereum are starting to trade in the United States. The U.S. Securities and Exchange Commission (SEC) on July 22 approved the final Form S-1 registration filings required to launch the ETF on stock exchanges including Nasdaq, the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange.
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According to Cointelegraph, approved issuers of Ethereum ETFs include major financial companies such as BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy. The decision comes two months after the SEC approved their Form 19b-4 filings on May 23, allowing the listing and trading of spot Ethereum ETFs on exchanges.
BlackRock’s iShares Ethereum Trust will be listed on the Nasdaq, while the Grayscale Ethereum Trust will be listed on the NYSE. Most exchanges, with the exception of Grayscale Ethereum Trust, will charge a base fee of 0.15% to 0.25% for buying and selling Ethereum ETFs.
At the same time, Fidelity, 21Shares, Bitwise, Franklin and VanEck will waive commissions for an unspecified period or until assets reach a certain volume.
The Grayscale Ethereum Mini Trust (ETF) will also waive fees for the first six months or until its net assets reach $2 billion.
Experts estimate that the new Ethereum spot ETFs could attract 10% to 20% of the flow of funds that Bitcoin has seen since its launch in spot ETFs just over six months ago.
Interestingly, the approval of the Ethereum ETF coincided with US President Joe Biden’s decision to withdraw from the 2024 elections, which is seen by some experts as a positive factor for crypto assets. Thus, Josh Gilbert, an analyst from the investment company eToro, in a recent note for Cointelegraph, described Biden’s decision to withdraw from the race as a definite victory for crypto assets. “The longer we see Trump leading the election odds, the more crypto assets will be included in his victory.”