Companies hoping to launch exchange-traded funds (ETFs) that directly track the price of Ethereum (Ether) have finalized their applications with the U.S. Securities and Exchange Commission (SEC). Approval is expected by next Tuesday, paving the way for these funds to start trading publicly.
Sources close to the situation suggest the SEC will give the green light to applications submitted by major investment firms including BlackRock, Fidelity, 21Shares, Grayscale, Bitwise, and Invesco Galaxy. These firms made final adjustments to their applications on Wednesday, following guidance from the SEC.
A key factor for investors is the annual management fee charged by each ETF. The filings revealed a range of fees, with Grayscale's main Ether ETF charging a significantly higher fee (2.5%) compared to competitors like BlackRock and Fidelity (0.25%). Industry experts predict this fee difference could impact investor decisions, pointing to similar trends observed with Bitcoin ETFs launched earlier in 2024.
Other notable fees include 0.21% for 21Shares, 0.20% for Bitwise, VanEck, and Invesco Galaxy, and a competitive 0.19% for Franklin Templeton. ProShares has not yet disclosed its fee structure.
Separately, the SEC approved applications from Grayscale and ProShares to launch "mini" Ether ETFs, designed for smaller investments. These mini-ETFs are expected to list on the NYSE Arca exchange, similar to the standard Ether ETFs approved in May by major exchanges like NYSE Arca, Cboe, and Nasdaq. This suggests a potential launch next Tuesday alongside the standard Ether ETFs from other applicants. Interestingly, Grayscale plans to charge a lower fee (0.15%) for its mini Bitcoin ETF compared to its mini Ether ETF (0.25%).
