Categories: U.S. Regulation

SEC Approves Two Spot Ethereum ETFs for NYSE Listing

The United States Securities and Exchange Commission (SEC) has approved two spot Ethereum exchange-traded funds (ETFs) for listing on the New York Stock Exchange’s (NYSE) Arca electronic trading platform, according to a filing on July 17. The approved ETFs are the Grayscale Ethereum Mini Trust and the ProShares Ethereum ETF.

Grayscale, a crypto investment company, expressed positive sentiments about the approval, stating that its team will continue to work closely with SEC staff as they aim for full regulatory approval for the US spot Ethereum ETPs.

The Grayscale Ethereum Mini Trust is one of two spot Ethereum ETFs that Grayscale is preparing to list. In May, the firm received SEC approval to convert its legacy Grayscale Ethereum Trust (ETHE) into an ETF.

Moreover, Grayscale has earlier announced plans to distribute shares of the new Mini Trust to ETHE fund holders. The ETHE fund, launched in 2017, was one of the first institutional investment vehicles for spot Ethereum

Reports suggest that the SEC has given preliminary approval to at least three issuers to begin listing spot Ether ETFs as soon as July 23.

Furthermore, several major financial firms have filed amended S-1 forms for their Spot Ethereum ETFs, indicating preparation for potential listing. These firms include BlackRock, Franklin, Bitwise, Invesco, Grayscale, and Fidelity. The firms have also set their management fees, suggesting they are in the final stages of preparing for trading.

However, the fees vary among the different companies. BlackRock and Invesco Galaxy have set a 0.25% fee, while Bitwise has announced a 0.20% fee with a discount for the first $500 million in assets.

Grayscale’s Ethereum Trust charges a higher 2.5% fee, but its mini Ethereum ETF will have a 0.25% fee. Franklin Templeton has the lowest fee at 0.19%, and Fidelity’s 0.25% fee will be waived until the end of 2024.

The ProShares Ethereum ETF, which joined the race later than others, filed its Form 19b-4 about three weeks after its competitors had already received approval. This fund is not expected to be among the eight that might be listed next week.

Terron Gold