Major Firms Reveal Seed Investments

Several top asset management firms, including BlackRock, have filed updated applications with the SEC for spot Ethereum (ETH) exchange-traded funds (ETFs). These filings show seed investments between $100,000 and $10 million and fees as low as 0.19%. Experts believe this increases the likelihood of ETFs launching in early July.

On June 21, firms like BlackRock, VanEck, Franklin Templeton, Grayscale, Invesco Galaxy, 21Shares, and Fidelity submitted amended S-1 Registration Statements to the SEC. These filings include specifics on seed investments and fees, building confidence that these ETFs might soon begin trading. 21Shares reported $340,739 in initial seed creation sales, while Invesco Galaxy listed $100,000 in seed investments. Fidelity and BlackRock raised $4.7 million and $10 million, respectively.

Some firms also revealed their fee structures. Franklin Templeton set fees at 0.19% with a six-month waiver for assets up to $10 billion. VanEck's fee is 0.20% with a waiver for the first $1.5 billion. Bloomberg analyst Eric Balchunas called these fees "pretty damn low" and is eager to see Grayscale's fees.

These low fees put pressure on BlackRock to stay under 30 basis points (bps). ETH fees are likely to be as low or lower than Bitcoin's," Balchunas said. The S-1 approval is a crucial step before trading begins, and Balchunas predicts the funds will launch in early July.

"The ball’s in the SEC’s court to inform issuers of any final changes and effectiveness. We are holding the line with July 2nd as our over/under for ETH ETFs launch date," Balchunas noted. Crypto hedge fund founder Quinn Thompson believes Ether ETF products might surpass expectations due to recent hype. He warns against focusing too much on initial inflows, which might miss the broader impact on the digital asset.

For the past two years, the industry has favored BTC and SOL. ETH ETFs will force a large re-rating for the asset. Once BTC stabilizes, ETH will start to shine," he said. Balchunas, while previously dismissive of ETH ETFs, now concedes they might achieve 20% of spot Bitcoin ETF inflows.

"Thank you for reminding me that I once called ETH spot ETFs 'small potatoes.' That was dismissive, and I take it back. That said, I still think ETH will be lucky to get 20% of the assets Bitcoin ETFs have. We'll see," he wrote.

Major asset management firms have filed updated applications for spot Ethereum ETFs, detailing seed investments from $100,000 to $10 million and fees as low as 0.19%. These filings increase confidence that ETFs will launch soon, possibly in early July. Firms like Franklin Templeton and VanEck have revealed their fee structures, adding pressure on BlackRock to keep its fees low. The SEC’s final decision is expected soon. The introduction of Ethereum ETFs is likely to significantly impact the digital asset market, potentially leading to a re-rating of Ethereum. While initial inflows are debated, the long-term effects of these ETFs are anticipated to be substantial.