BlackRock, other issuers update S-1 filing for spot Ethereum ETFs, raising expectations for July launch

Seven spot Ethereum ETF applicants amended their registration statements with the SEC on June 21, leading to increased expectations of a trading launch in early July.

Franklin Templeton, VanEck, Invesco Galaxy, BlackRock, 21Shares, and Fidelity submitted updated S-1 registrations for their respective funds.

Grayscale submitted an amended S-3 registration for its Ethereum Trust and an additional amended S-1 statement for its mini Ethereum Trust. Bitwise did not amend its registration statement.

Bloomberg ETF analyst Eric Balchunas continued to predict July 2 as an over/under date for the funds’ launch following the latest filings, saying:

“Anyway that’s basically a wrap. Ball in SEC’s court now.”

He also maintained his view that Ethereum ETFs are unlikely to attract more than 20% of the AUM Bitcoin ETFs have attracted.

Fees disclosed

Franklin Templeton disclosed a 0.19% sponsor fee in the updated filing. The firm will waive the fee for the first $10 billion assets for six months. Meanwhile, VanEck disclosed a similar 0.20% sponsor fee, which it intends to waive for the first $1.5 billion assets until an unstated date in 2025.

Balchunas believes the low fees will pressure BlackRock to announce sub-30 basis point sponsor fees for its fund as well. Notably, both BlackRock and Fidelity have yet to disclose sponsor fees for their ETFs.

Experts believe BlackRock’s fee, in particular, will be a key detail that could lead to heightened competition among the firms. Balchunas said the asset manager’s fee is the most important missing detail other than the launch date.

According to the analyst:

“[BlackRock’s] fee is the sun that the rest will need to orbit around.”

The launch of spot Bitcoin ETFs in January notably led to a “fee war” among issuers, each vying to offer competitively low fees. Currently, spot Bitcoin ETF fees largely range between 0.19% and 0.39%, though Grayscale’s GBTC has a higher 1.5% fee.

Seed investments

Invesco Galaxy disclosed a $100,000 seed transaction on June 17 in which the seed investor purchased 4,000 Shares at $25 per share.

Grayscale disclosed a $100,000 seed share purchase for its mini Ethereum trust. On May 31, the sponsor purchased 10,000 shares at $10 per share.

Fidelity said its seed capital investor, FMR Capital, purchased 125,000 shares at $37.99 per share on June 4, contributing $4.7 million to the trust.

Meanwhile, BlackRock previously reported $10 million in seed funding for its ETF.

Mentioned in this article