Key Points
- Ethereum’s price has surged 11% in anticipation of spot Ethereum ETFs.
- ETF issuers announced competitive fee structures, ranging from 0.19% to 0.25%, except for Grayscale’s higher fee.
- Launches include major names like Fidelity, Franklin Templeton, and Invesco.
- SEC’s final approval is expected to boost Ethereum and the broader crypto market.
Ethereum (ETH) has surged past $3,500, marking an impressive 11% increase in just a week, according to TradingView’s data. This rally is driven by the anticipation of five spot Ethereum exchange-traded funds (ETFs) set to start trading on the CBOE on July 23.
Ethereum breaks through $3,500 as spot Ethereum ETF progress nears finish line https://t.co/BSM0Xn0KAu pic.twitter.com/pv3ykLxxyx
— Los Hermanos Kruptos (@LosKruptos) July 20, 2024
Major Spot Ethereum ETFs Ready for Launch
The Ethereum market is buzzing with excitement as several prominent ETFs are set to debut. Bloomberg ETF analyst Eric Balchunas hinted that these ETFs could go live exactly two months after the SEC approved the first batch of spot Ethereum ETFs. The upcoming launches on the CBOE include:
Fidelity Ethereum Fund (FETH)
- Franklin Templeton Ethereum ETF (EZET)
- Invesco Galaxy Ethereum ETF (QETH)
- VanEck Ethereum ETF (ETHV)
- 21Shares Core Ethereum ETF (CETH)
These ETFs, along with BlackRock’s iShares Ethereum Trust and Grayscale’s Ethereum Trust, initially received the green light from the US Securities and Exchange Commission (SEC) in May.
BlackRock’s iShares Ethereum Trust is slated to launch on Nasdaq, while Grayscale Ethereum Trust is set to debut on NYSE, though official announcements from these exchanges are still pending.
Competitive Fee Structures Unveiled
As the launch date nears, most ETF issuers have disclosed their fee structures. Despite some initial fee waivers to attract assets, post-waiver fees among most asset managers are relatively similar, indicating no significant price competition. Here are the details:
- Franklin Templeton offers the lowest post-waiver fee at 0.19%.
- Grayscale’s ETF management fee is considerably higher at 2.5%.
- Other issuers, excluding Grayscale Ethereum Mini Trust, have fees ranging from 0.20% to 0.25%.
This competitive fee range suggests that issuers are striving to attract investors by offering lower costs, which could lead to significant inflows of capital into the Ethereum market.
Ethereum’s Price Surge and Market Impact
Ethereum began the week on a high note, rallying 5% to over $3,300 as the market awaited the SEC’s trading approval of spot Ethereum funds. The price has now climbed to $3,500, still about 28% below its all-time peak of $4,800.
The final approval of these ETFs is expected to have a substantial impact on the Ethereum market and the broader crypto industry. It could attract significant inflows of both institutional and retail capital, potentially mirroring the success seen with spot Bitcoin ETFs.
For instance, the price of Bitcoin surged over 40% following the launch of US spot Bitcoin funds in January, despite an initial correction. Bitcoin reached a new record high of $73,000 in mid-March, showcasing the potential upside for Ethereum once these ETFs begin trading.
Ethereum’s strong performance and the anticipated influx of capital from the ETF launches could herald a new era of growth and adoption for the cryptocurrency. As institutional and retail investors pour into Ethereum, the broader crypto market stands to benefit from increased legitimacy and investment.
