Simon Peters, a cryptoasset expert at the investment and trading platform eToro, recalled that the regulator had already approved the 19b-4 forms to allow exchanges to list spot ethereum ETFs in May, so the approval of the S-1 applications It was the final step for investors to access these funds.
“Details on each issuer’s spot ethereum ETF are also available on their respective websites, reinforcing the imminence of their launch. According to Bloomberg ETF analyst James Seyffart, Seven of the 10 applications have initial funding exemptionswhile five have an initial rate of 0%,” explained this expert.
Grayscale’s ETHE ETF has the highest management fee of all ethereum spot ETF applications at 2.5%, which has led some analysts to speculate that we will see significant outflows from this ETF, with investors rotating into lower-fee ETFs, as we saw with Grayscale’s bitcoin spot ETF, GBTC.
“However, the Grayscale Ethereum Mini Trust, a spin-off of the ETHE investment fund, will have a 0.15% management fee, currently being the ETF with the lowest fee after waivers,” Peters notes.
Ethereum ETF: What it could mean for investors
For his part, Sergio Ávila, senior market analyst at IG, highlighted that this advanceand “allows investors of all levels to access ether in a more regulated and secure manner”.
“The arrival of these ETFs could be a major catalyst for the cryptocurrency market. Experts believe that these funds could attract between 10% and 20% of the flows that bitcoin ETFs have seen since their launch,” he said. Since their debut in January, bitcoin ETFs brought in a net $17.5 billion, a figure that would double if we remove the negative effect of Grayscale’s GBTC fund, which has lost a net $18.7 billion in this period.
“The introduction of ETH spot ETFs is more than just a financial development; it is a testament to the growing recognition and acceptance of cryptocurrencies in the traditional financial world. With big names like BlackRock and Fidelity on board, these ETFs are expected to increase confidence and stability in the crypto market, attracting more investors,” explains Ávila, who believes that the second-largest crypto asset could also benefit from Joe Biden’s decision not to lead the Democratic Party’s ticket for the November presidential election.
Despite positive news of the launch of an ethereum spot ETF, ethereum fell 2.6% against bitcoin last week. “We’ll see if ethereum can outperform its peers in the coming weeks once the ETFs launch and new inflows begin,” Peters said.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
