SEC Approves Ethereum ETFs: Trading Starts on July 23
The U.S. Securities and Exchange Commission (SEC) has approved several Ethereum spot exchange-traded funds (ETFs), which will begin trading on July 23. This marks a significant development in the cryptocurrency market.
The SEC has given final approval to the following six Ethereum ETFs:
- Fidelity Ethereum Fund
- Invesco Galaxy Ethereum ETF
- VanEck Ethereum ETF
- 21Shares Core Ethereum ETF
- iShares Ethereum Trust (BlackRock)
- Bitwise Ethereum ETF
Details on the management fees for these ETFs have been previously announced:
- Fidelity: 0.25% fee, waived until the end of 2024.
- Franklin Templeton: Fee waived until January 31, 2025, for the first $10 billion in assets.
- VanEck: Fee waived for the first $1.5 billion for one year post-listing.
- 21Shares: 0.21% fee, waived for the first $500 million or six months, whichever comes first.
- BlackRock iShares Ethereum Trust: 0.12% fee for the first $2.5 billion for 12 months, then 0.25%.
The Grayscale Ethereum Trust currently has the highest fees among Ethereum ETFs.
Expected Fund Inflows
Thomas Perfumo, head of strategy at Kraken, predicts monthly net inflows of $750 million to $1 billion in the first five to six months. Citigroup forecasts $4.7 billion to $5.4 billion in inflows over the same period but expects this to be only 30-35% of Bitcoin ETF inflows.