Critical Development in Ethereum ETFs: All Eyes Are Now on the SEC!

There is an exciting development for investors who want to invest in cryptocurrencies in the USA. The final approval process for spot Ethereum ETFs is gaining momentum. With the completion of the applications submitted by eight different organizations, all eyes are now turned to the Securities and Exchange Commission (SEC).

S-1 forms and administration fees on Ethereum ETFs

Prominent names including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares and Invesco have filed new applications with the SEC, completing the deficiencies in their S-1 forms for Spot Ethereum ETFs. In these applications, issues such as administration prices and seed investments were included in more detail. So far, only Franklin Templeton and VanEck have announced annual administration prices. These prices were determined as 0.19% and 0.20%, respectively.

Bloomberg senior ETF analyst Eric Balchunas thinks VanEck’s low price will lead to competition in the market and other companies such as BlackRock will be under pressure to keep their prices below 0.30%. Last month, the SEC approved the 19b-4 forms required for these ETFs. But before trading can begin, S-1 forms must also come into force.

Initial investments and market expectations

Some companies also disclosed the initial capital they spent to initiate investments in their applications. 21Shares US LLC, sponsor of the 21Shares Core Ethereum ETF, made a primary investment of $340,739 by purchasing 20,000 shares. Franklin Templeton $100,000, Invesco Ltd. made a first investment of $100,000 for the Invesco Galaxy Ethereum ETF. BlackRock, on the other hand, attracted attention with a previously known high number of first investments of 10 million dollars. These investments are valuable in that they show the issuer institutions’ commitment to the funds and provide the liquidity necessary to start trading.

The market awaits the SEC’s final decision with great excitement. The SEC goes through a strict review process to ensure that all information is fully presented and regulatory procedures are completed. Although some rumors talk about the possibility of a launch on July 2, investors are finally waiting for the SEC’s decision.

Competitive administration prices and global appeal

These developments, cryptokoin.com As we reported, it is seen as an important step after the Spot Bitcoin ETFs approved by the SEC in January. Administration prices in spot Bitcoin ETFs were expected to vary between 0.21% and 0.39%, and peer prices were expected to be applied in Ethereum ETFs. The prices announced by Franklin Templeton and VanEck met this expectation and show that there is a price war to offer investors more attractive options.

Interest in Ethereum ETFs is not limited to the United States. In Europe, Standard Chartered announced that it has opened a Spot Bitcoin and Ethereum trading desk. This development shows that global interest in cryptocurrency investment products is increasing. In short, the approval process for Ethereum ETFs in the USA has reached completion. These ETFs, which are expected to start trading on stock exchanges in July, will offer investors the opportunity to invest in crypto currencies with classical market instruments. It is a matter of curiosity how the markets will react following the SEC’s decision.