Cboe Global Markets will officially list spot Ethereum Exchange-Traded Funds (ETFs) for trading starting July 23. This development aligns with ETF Analyst James Seyffart’s predictions about the U.S. Securities and Exchange Commission’s (SEC) approval date.
Major Firms Enter the Market
Nate Geraci, President of ETF Store, highlighted the importance of this launch. Major firms, including Fidelity Investments, Franklin Templeton, Invesco, 21Shares, and VanEck, will soon offer spot Ethereum ETFs. These firms have been preparing extensively to meet SEC requirements. Recent updates to S-1 forms by BlackRock, Franklin, Bitwise, Invesco, Grayscale, and Fidelity show they are finalizing their trading preparations.
Fee Structures and Comparisons
Management fees are a key competitive factor among ETF providers. Most have set fees between 0.19% and 0.25%, with some offering initial discounts or waivers. For example:
- BlackRock has set its Ethereum ETF sponsor fee at 0.25%.
- Franklin Templeton has a 0.19% fee.
- Bitwise announced a 0.20% fee with a discount for the first six months on the first $500 million in assets.
VanEck plans to waive fees until 2025 or until assets hit $1.5 billion. In contrast, Grayscale surprised everyone by setting a 2.5% fee, ten times higher than others.
This competitive landscape underscores the growing interest and varied approaches within the Ethereum ETF market. Firms are vying for investor attention with their unique fee structures and offerings, demonstrating the increasing significance of Ethereum ETFs in the financial industry.
