Digital asset manager Grayscale has officially launched its two spot Ether exchange-traded funds (ETFs) on the NYSE Arca. This marks a significant milestone for both its investors and the broader ETF market.
SEC Approval and Trading Commencement
The launch follows the United States Securities and Exchange Commission (SEC) granting final approval for spot Ether ETFs, enabling multiple issuers to start trading their products. Bloomberg analyst James Seyffart noted in a July 22 X post that while the Grayscale Ethereum Trust (ETHE) had not yet received official effective documents from the SEC, he anticipated their arrival on the morning trading commenced.
Also Read: Grayscale Transfers $1 Billion Ethereum to Coinbase Prime Ahead of ETF Debut
Grayscale’s Ether-Based Products
ETHE, currently the world’s largest Ether-based exchange-traded product, boasts $9.19 billion worth of ETH in its holdings and charges a 2.5% management fee. Meanwhile, Grayscale’s second product, the Grayscale Ethereum Mini Trust (ETH), has waived fees for the first six months or until it reaches $2 billion in net assets under management. After meeting either threshold, a 0.15% fee will be implemented, making it the cheapest spot Ether ETF in the US.
John Hoffman, Grayscale’s managing director, highlighted the potential of these products:
“ETH and ETHE will allow investors to invest in Ethereum’s potential to create markets, transform financial systems, utilize decentralized finance (DeFi), and drive innovation through the trusted ETP wrapper — without the need to buy, store, or manage Ethereum directly.”
Market Impact and Competitors
Grayscale’s launch coincides with the approval of Ether ETFs from other major players including BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy, all of which began trading on July 23. These developments are poised to provide traditional investors with unprecedented exposure to Ethereum, an asset with the potential to revolutionize the financial system.
