Major asset management firms such as BlackRock, VanEck, and Franklin Templeton have recently updated their filings with the SEC, signaling 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, well-known companies like 21Shares, Grayscale, and Invesco Galaxy, along with the aforementioned firms, also made significant moves to reinforce confidence in the imminent arrival of these new investment options for crypto assets. Notably, 21Shares achieved initial seed sales totaling $340,739, while Invesco Galaxy contributed $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 of these entities. Franklin Templeton announced fees of just 0.19%, with an exemption for assets up to $10 billion in 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, emphasizing the pressure on BlackRock to keep fees below 30 basis points. This trend is likely to continue for Ethereum ETFs.
Balchunas also predicts that the funds will be launched in early July and expresses confidence that the SEC will soon approve the revised requests. “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,” he said.
Quinn Thompson, the founder of a hedge fund specializing in cryptocurrencies, notes that while the initial focus is on Ethereum, the long-term impact of ETH ETFs could be much broader. “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,” Thompson said. He further 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.”
Disclaimer: The views and opinions expressed by the author or anyone mentioned in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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