- Ethereum ETF amendments have started rolling out on deadline day.
- The recent submissions come with minimal changes.
- Recent SEC actions have skewered expert approval date predictions.
ETFs have been the dominant narrative in crypto circles in 2024 as crypto market participants anticipate a market boom sparked by trillions of dollars in institutional capital. In recent months, the ETF watch has been on Ethereum following the SEC’s landmark decision in May 2024 to approve the rule change that would permit the launch of spot Ethereum ETFs. Trading approval for these proposed products, however, remains a different matter.
In the weeks following the rule change approval, continued work on registration statements has left observers on the edge of their seats, with the SEC dashing hopes of an early July launch by sending back filings to applicants for amendments at the end of June 2024. These amendments have begun to roll in as experts maintain that the wait is nearly over.
Deadline Day ETH ETF Amendments Roll in
Fresh Ethereum ETF amendments have started rolling in amid the SEC’s Monday, July 8 deadline, with VanEck and 21 Shares leading the way. Other applicants are expected to follow suit except Bitwise, which submitted its amendments on July 3.
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As highlighted by Bloomberg ETF Analyst Eric Balchunas, VanEck’s recent filing has no significant changes, as the firm had already revealed its fees. Set at 0.20%, the firm has since noted that it would waive this fee till an undisclosed time in 2025.
Beyond fees, VanEck has revealed a seed capital of about 2,929 ETH worth over $8.7 million. Seed capital is the initial investment in an ETF that allows it to be traded on launch. The investment is designed to cover operational costs and can be critical to a fund’s success as it speaks to its liquidity. For context, BlackRock and Fidelity have revealed Ethereum ETF seed capitals of $10 million and $4.7 million, respectively.
On the other hand, 21 Shares continues to hold out on revealing its fees. The firm had earlier revealed a seed capital of about $340,000.
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The recently amended filings come six days after the July 2 approval date predicted by experts , creating doubt about whether applicants could get the green light this time.
“Informative Week”
Fielding comments expressing doubts about the near launch of spot Ethereum ETFs, Bloomberg’s Balchunas urged onlookers to “stay tuned,” asserting that it would be “an informative day and week.” Reiterating his belief that Ethereum ETFs would go live for trading soon, the analyst set the odds at 90% .
Balchunas is not the only expert yet to give up on a near Ethereum ETF launch. In an X post earlier in the day, ETF Store President Nate Geraci argued that the SEC would likely approve Ethereum ETFs within the next two weeks.
On the Flipside
- The launch date for spot Ethereum ETFs remains anyone’s guess.
- Experts have argued that Ethereum ETFs are unlikely to achieve the same level of success as their Bitcoin counterparts approved in January 2024.
Why This Matters
The recently amended filing submissions bring spot Ethereum ETFs closer to launch. The products have been tipped to usher in billions of institutional capital into the Ethereum market, which could raise the asset’s price.
Read this for more on Ethereum ETFs:
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