Major Asset Managers Submit Revised Proposals for Ethereum ETFs to SEC

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Several leading asset managers have recently submitted updated proposals for Ethereum exchange-traded funds (ETFs) to the United States Securities and Exchange Commission (SEC). Notable firms including VanEck, BlackRock, Grayscale, Invesco Galaxy Digital, and Fidelity aim to provide comprehensive updates on their respective Ethereum funds, as highlighted by Bloomberg analyst Eric Balchunas in a recent post on X.

Fee Structures and Competitive Pressures

VanEck’s filing reveals a management fee of 0.20% for its Ethereum fund, aligning closely with competitors such as Franklin Templeton, which charges 0.19% in management fees. BlackRock, however, has not yet disclosed the fee structure for its iShares Ethereum Trust (ETHA). Balchunas suggests that VanEck’s fee announcement could pressure BlackRock to set their management fees below 0.30%.

S-1 Approval and Anticipated Launch

The approval of the S-1 registration statement is one of the final steps before these ETFs can begin trading on Wall Street exchanges. Balchunas anticipates that these funds will launch in the first week of July, just ahead of the U.S. Independence Day holiday.

In May, the SEC approved a rule change permitting major asset managers such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise to list and trade eight spot Ether ETFs. Fidelity’s updated filing disclosed that its affiliate, FMR Capital, has seeded the fund with $4.7 million at $38 per share.

Additional Proposals and Investments

Bitwise also updated its ETF proposal with the SEC on June 19, indicating a potential $100 million investment from Pantera Capital upon the ETF’s trading launch. Meanwhile, Hashdex is seeking regulatory approval for a new ETF that combines spot Bitcoin and Ether, having previously abandoned plans for an ETF focused solely on Ether.

Political Influences on Approval

James Seyffart, a Bloomberg ETF analyst, suggests that the approval of spot Ethereum ETFs was likely influenced by political factors rather than purely financial considerations. Seyffart pointed to the broader political climate, including actions by the Biden administration and the crypto community’s responses, as significant influences on the approval process.

Future of Crypto ETFs

Seyffart noted that further approvals for other crypto ETFs, including those based on Solana, are unlikely without substantial regulatory changes to monitor for fraud and manipulation. Conversely, crypto investor and trader Brian Kelly has speculated that Solana could be the next cryptocurrency to have a spot ETF in the United States. On CNBC’s ‘Fast Money,’ Kelly posited that Solana might join Bitcoin and Ethereum as the “big three” cryptocurrencies for this cycle.

Bitwise’s Marketing Push

In the meantime, Bitwise has launched its first Ether ETF commercial, a 39-second clip highlighting Ethereum’s advantages. The commercial can also be minted on the Ethereum blockchain, further integrating the promotion within the crypto ecosystem.