{"id":556224,"date":"2024-07-23T14:21:58","date_gmt":"2024-07-23T14:21:58","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=556224"},"modified":"2024-07-23T14:21:58","modified_gmt":"2024-07-23T14:21:58","slug":"5-things-you-need-to-know-about-spot-ethereum-etfs","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/5-things-you-need-to-know-about-spot-ethereum-etfs","title":{"rendered":"5 Things You Need To Know About Spot Ethereum ETFs\u00a0"},"content":{"rendered":"

The US Securities and Exchange Commission (SEC) approved spot Ethereum ETF (exchange-traded fund) products on July 22 and they’re set to launch today. <\/span><\/p>\n

The <\/span>approval<\/span><\/a> is seen as another landmark breakthrough for crypto that will lead to greater mainstream adoption of digital assets.<\/span><\/p>\n

Some analysts, including Bloomberg’s Eric Balchunas, <\/span>say<\/span><\/a> that ETH ETF approvals could open the floodgates for more spot crypto ETFs in the US, with Solana ETFs widely considered to be next in line.  <\/span><\/p>\n

As the crypto community speculates on how these products will perform, here are five key things you need to know about the latest crypto ETFs: <\/span><\/p>\n

What Is A Spot Ether ETF? <\/span><\/h2>\n

A spot ETH ETF is an investment fund tracking Ether’s spot price and is listed on traditional stock exchanges. <\/span><\/p>\n

The recently approved Ethereum ETFs will be listed on the Chicago Board Options Exchange (CBOE), Nasdaq, and the New York Stock Exchange (NYSE). <\/span><\/p>\n

Spot ETH ETFs make it easier for investors and institutions to access Ethereum within a traditional financial setting. Fund managers can allocate part of their portfolio to Ether ETFs rather than investing in Ethereum directly. <\/span><\/p>\n

In the first quarter of this year, several ”big fish institutions,” including the <\/span>State of Wisconsin<\/span><\/a> and <\/span>Millennium Management<\/span><\/a>, revealed investments in spot Bitcoin ETFs.<\/span><\/p>\n

The hope is that mega fund managers like them will soon also be piling into Ether ETFs. <\/span><\/p>\n

Who Are Issuing Spot Ether ETFs? <\/span><\/h2>\n

Eight Ether ETFs are expected to start trading on Tuesday. The issuers include Wall Street giants BlackRock, Fidelity, Franklin Templeton, and VanEck. <\/span><\/p>\n

Crypto-native firms such as ARK Invest & 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also among the issuers.<\/span><\/p>\n

The majority of the Ethereum ETFs use Coinbase as a custodian. VanEck is also tapping the Gemini exchange for clearing infrastructure, while Fidelity will self-custody its Ether for the ETF. <\/span><\/p>\n

Each of these ETFs is offered by a renowned fund manager using professional market makers to create and redeem shares. <\/span><\/p>\n

How Much Are The Fees For Spot ETH ETFs? <\/span><\/h2>\n

The ETF issuers have set varying fees to gain a competitive edge in what is popularly known as the “fee war.” <\/span><\/p>\n

BlackRock filed an amended S-1 registration statement on July 27, revealing a 0.25% fee for its ETF. However, the asset manager will impose a 0.12% fee for the first $2.5 billion in net assets. <\/span><\/p>\n

Fidelity has also set its fee at 0.25% but will slash the fees entirely for at least 12 months. VanEck and Bitwise have set their fees at 0.20% but will also slash them initially. <\/span><\/p>\n

The 21Shares Core Ethereum ETF has a 0.21% fee with zero fees for the first 12 months or until the fund hits $500 million in net assets. <\/span><\/p>\n

Invesco Galaxy has set a 0.25% fee with no waiver period, while Franklin Templeton has the lowest fee at 0.19%. <\/span><\/p>\n

The Grayscale Ethereum Trust (ETHE) has the highest fee at 2.50%, similar to its Bitcoin ETF. However, its smaller “mini trust ETF” has a lower fee of 0.25%. <\/span><\/p>\n

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Okay everyone. Here are the details for the #Ethereum<\/a> ETFs that we expect to launch next week. We are only missing details for Proshares's ETF. 7 of the 10 funds have fee waivers. pic.twitter.com\/5v3QnHOeub<\/a><\/p>\n

— James Seyffart (@JSeyff) July 17, 2024<\/a><\/p><\/blockquote>\n