The United States Securities and Exchange Commission (SEC) has reportedly delivered final instructions to asset managers preparing to launch Ether exchange-traded funds (ETFs).
According to Bloomberg’s analyst Eric Balchunas, the Commission instructed issuers to submit their final S-1 filings by July 16, targeting a launch for the new funds on July 23. The final filings must include the fees issuers plan to charge in their new crypto funds.
On May 23, the agency approved issuers' 19-b form proposing rule changes that would allow the crypto-based investment vehicles. Asset managers now need approval for their initial securities registration S-1 forms.
Several major financial institutions, including BlackRock, Grayscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex and Franklin Templeton, are vying for the approval and launch of Ether ETFs.
In response to regulatory concerns, issuers like ARK Investments and Fidelity have removed staking from their Ether ETF plans in recent weeks.
ETFs Fees
Ether ETFs will feature various fee structures. Invesco and Galaxy had set management fees at 0.25%, slightly higher than those of VanEck and Franklin Templeton, which have disclosed fees of 0.20% and 0.19%, respectively.
These fees are significantly lower than the 2.50% management fees charged by Grayscale’s Ethereum Trust. Grayscale plans to launch a new spot Ether ETF but has not yet disclosed the new fees.
The SEC’s approval process for Ether ETFs is anticipated to follow a pattern similar to that of Bitcoin ETFs. Analysts predict that Ether ETFs could garner significant interest from investors, attracting up to $10 billion in new inflows in the months following the launch.
“We saw $15 billion in flows for Bitcoin. I think we’re probably going to see $5 billion to $10 billion for Ethereum,” Tom Dunleavy, a managing partner at crypto investment firm MV Global, previously told Cointelegraph.
The price of Ether (ETH) is up 6.1% at the time of writing, trading at $3,394.