BlackRock and other issuers update S-1 filing for Ethereum spot ETFs, raising expectations for July launch

Seven sEthereum ETF The applicants amended their registration statements with the SEC on June 21, leading to increased expectations for a commercial launch in early July.

Franklin Templeton, VanEckInvesco Galaxy, black rock, 21SharesAnd loyalty have submitted updated S-1 registrations for their respective funds.

Shades of grey submitted an amended S-3 filing for its Ethereum Trust and a supplemental amended S-1 filing for its mini Ethereum Trust. Bitwise has not amended its registration statement.

Bloomberg ETF analyst Eric Balchunas continued to predict July 2 as the over/under date for fund launches following the latest filings, stating:

“Anyway, that’s basically a summary. The ball is now in the SEC’s court.

He also maintained his view that Ethereum ETFs are unlikely to attract more than 20% of the assets under management that Bitcoin ETFs have attracted.

Fees disclosed

Franklin Templeton disclosed a sponsor fee of 0.19% in the updated filing. The company will waive fees for the first $10 billion in assets for six months. At the same time, VanEck disclosed a similar sponsorship fee of 0.20%, which it intends to waive for the first $1.5 billion in assets until an unspecified date in 2025.

Balchunas believes the low fees will push BlackRock to also announce sponsorship fees below 30 basis points for its fund. Notably, BlackRock and Fidelity have yet to disclose sponsorship fees for their ETFs.

Experts believe that BlackRock’s fees, in particular, will be a key detail that could lead to increased competition between the companies. Balchunas said asset manager fees are the most important missing detail other than the launch date.

According to the analyst:

“[BlackRock’s] Fee is the sun around which the others will orbit.

The spot launch Bitcoin In January, ETFs notably gave rise to a “fee war” between issuers, each vying to offer competitive and low fees. Currently, Bitcoin ETF spot fees range widely between 0.19% and 0.39%, although Grayscale GBTC has a higher fee of 1.5%.

Start-up investments

Invesco Galaxy disclosed a $100,000 seed transaction on June 17 in which the seed investor purchased 4,000 shares at $25 per share.

Grayscale has disclosed a $100,000 starting stock purchase for its Ethereum mini trust. On May 31, the sponsor purchased 10,000 shares at $10 per share.

Fidelity said its seed investor, FMR Capital, purchased 125,000 shares at a price of $37.99 per share on June 4, contributing $4.7 million to the trust.

Meanwhile, BlackRock previously announced $10 million in seed funding for its ETF.

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Published in: Ethereum, Cryptocurrency

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