One week from now, there may be a new sheriff in town for spot crypto ETFs — spot ether ETFs.
Per Reuters, the U.S. SEC has given at least three asset managers the green light to begin trading spot ether ETFs next Tuesday, July 23rd. The report notes that approval requires applications to submit their final documents to regulators before the week ends. One of Reuters’ sources expects eight asset managers to launch funds on Tuesday.
Much like with the release of spot ether ETFs, asset managers are getting competitive with their expense ratios. According to a recent filing, BlackRock plans to offer its iShares Ethereum Trust with a 0.12% fee for the first twelve months. Afterword, the expense ratio is slated to sit at 0.25%.
Other issuers are aiming to offer spot ether ETFs with low fees as well. Franklin Templeton’s spot ether ETF filing puts its expense ratio at 0.19%. Meanwhile, a filing from Bitwise marks an anticipated expense ratio of 0.20%.
Great Anticipations
Already, asset managers are expressing excitement over giving investors access to these funds. Recently, Bitwise Asset Management CIO Matthew Hougan told CNBC that the arrival of spot ether ETFs marked “sort of the birth of a new asset class.”
“If you want to invest in the growth of tokenization, Ethereum is like the picks and shovels play,” Hougan added. “It underpins all of it. … I think that is going to appeal to a lot of people.”
“Client demand is growing alongside the maturation of the crypto asset class, and Grayscale is proud to offer pioneering financial products that provide our clients’ choice when considering convenient, registered exposure to crypto assets, like Ethereum,” adds John Hoffman, Grayscale Managing Director and Head of Distribution and Strategic Partnerships.
If the fund flows from the release of spot bitcoin ETFs can indicate anything, it’s that demand for spot crypto funds is certainly present. For example, the iShares Bitcoin Trust Registered (IBIT) has continued to see extremely strong flows, with the fund gaining over $450 million since July 10th, 2024.
However, it remains uncertain if spot Ethereum ETFs will see similar results. One can argue that Ethereum does not have the same name recognition that Bitcoin currently possesses.
“Spot ether ETF approval not only satisfies investor appetite for crypto products beyond spot bitcoin ETFs, but also further legitimizes crypto as an asset class in the broader financial world,” notes Roxanna Islam, CFA,CAIA, Head of Sector & Industry Research at VettaFi.
Prices for Ethereum still remain in a strong position ahead of next week’s potential launches. Per Cointelegraph, the price of Ethereum currently sits at about $3,450.
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