After a long period of speculation and uncertainty, Spot Ethereum ETFs will officially begin trading next week, on Tuesday, July 23, 2024. The Chicago Board Options Exchange (CBOE) announced this important development.
Five Ethereum ETFs to Launch on Cboe Next Week
On Friday, July 19, the Chicago Board Options Exchange opened. It was published. New release notices reveal highly anticipated Ethereum ETF launch The exchange has announced five Ethereum ETFs, including Fidelity (FETH), VanEck (ETHV), 21Shares (Seth)Invesco (QETH) and Franklin Templeton (EZET) are expected to launch their shares next Tuesday.
Each Cboe notice states:
We are pleased to announce that one (1) Exchange Traded Product (“ETP”) will be listed on Cboe and will begin trading as a new issue on July 23, 2024, pending regulatory effectiveness.
The announcement is in line with the latest forecast — in a long line of predictions — made by Bloomberg ETF expert Eric Balchunas, who suggested a potential launch date of July 23, 2024. That came after the U.S. Securities and Exchange Commission (SEC) asked issuers to file their final S-1 filings.
The SEC still needs to approve Form S-1s for issuers to register Ethereum ETFs for public sale. However, it is worth noting that the SEC has approved Form 19b-4s for ETH ETF issuers since May 2024.
Furthermore, most ETH ETF issuers have disclosed the management fees on their funds, with most temporarily waiving or discounting their fees. It will be interesting to see how these fees impact market share distribution once ETH ETFs go live.
It’s worth noting that asset management giant BlackRock plans to charge a 0.25% management fee on its ETHA exchange-traded fund, according to its final S-1 filing. However, the company revealed that it intends to reduce the fee to 0.12% during the fund’s initial launch period — until the fund runs for 12 months or reaches $2.5 billion in net assets.
ETH Price at a Glance
The Ethereum ETF announcement had little impact on the price of Ether, which appears to have already priced in. At the time of writing, ETH is trading at around $3,485, reflecting a 2% increase in the last 24 hours.
Capital inflows into Ethereum spot ETFs are expected to positively impact the cryptocurrency’s price — and potentially the market as a whole. This prediction is not far-fetched, given the clear impact spot ETFs have had on Bitcoin’s value so far in 2024.
The price of Ethereum on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image by iStock, chart by TradingView
