Spot Ethereum ETFs Set to Launch on CBOE Next Week
Spot Ethereum ETFs are set to launch on CBOE next week, marking a major milestone with five funds from top financial players starting trading.
Spot Ethereum ETFs (exchange-traded funds) will start trading next week on Tuesday, July 23, 2024, as revealed by the Chicago Board Options Exchange (CBOE).
On Friday, July 19, CBOE announced the debut of five Ethereum exchange-traded funds from Fidelity (FETH), VanEck (ETHV), 21Shares (CETH), Invesco (QETH), and Franklin Templeton (EZET). The statement confirmed these ETFs would start trading on July 23, 2024, subject to regulatory approval.
"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." For these ETFs to trade publicly, the SEC must approve the S-1 forms submitted by the issuers. The SEC had approved the 19b-4 forms for ETH ETF issuers in May 2024. Most issuers have revealed their management fees, with several offering temporary fee waivers or discounts.
BlackRock plans to charge a 0.25% management fee for its spot ETH ETF, ETHA, but will reduce this to 0.12% during the fund's first year or until it reaches $2.5 billion in assets. This fee reduction aims to attract early investors.
The announcement of the spot Ethereum ETFs had little immediate impact on Ether's price, which stands around $3,485, up 2% in the last 24 hours. The capital flowing into these ETFs is expected to positively affect Ether’s price and the broader market, similar to the impact of spot ETFs on Bitcoin in 2024.
The launch of these spot Ethereum ETFs marks a major milestone in the crypto market. These ETFs provide a regulated, accessible way for investors to gain Ethereum exposure, likely attracting more investors and driving demand for Ether. This success could lead to further crypto innovations and acceptance.
The official launch of spot Ethereum ETFs on Cboe next week is a significant development for Ethereum and the broader crypto market. With key financial players like Fidelity, VanEck, 21Shares, Invesco, and Franklin Templeton participating, these ETFs provide new investment opportunities. Their success will be closely watched for its impact on Ether’s price and market dynamics, signaling a growing acceptance of cryptocurrencies in mainstream finance.
