Ethereum

Franklin

Spot

The US Securities and Exchange Commission (SEC) approved spot Ethereum ETF (exchange-traded fund) products on July 22 and they’re set to launch today.&nbsp;
The <a href="https://insidebitcoins.com/news/spot-eth-etf-products-launch-today-after-sec-approval-but-may-face-underwhelming-demand" target="_blank" rel="noopener noreferrer nofollow">approval</a> is seen as another landmark breakthrough for crypto that will lead to greater mainstream adoption of digital assets.
Some analysts, including Bloomberg’s Eric Balchunas, <a href="https://x.com/EricBalchunas/status/1812942525394788570" target="_blank" rel="noopener noreferrer nofollow">say</a> that ETH ETF approvals could open the floodgates for more spot crypto ETFs in the US, with Solana ETFs widely considered to be next in line.&nbsp;&nbsp;
As the crypto community speculates on how these products will perform, here are five key things you need to know about the latest crypto ETFs:&nbsp;
<h2 id="span-style-font-weight-400-what-is-a-spot-ether-etf-span">What Is A Spot Ether ETF?&nbsp;</h2>
A spot ETH ETF is an investment fund tracking Ether’s spot price and is listed on traditional stock exchanges.&nbsp;
The recently approved Ethereum ETFs will be listed on the Chicago Board Options Exchange (CBOE), Nasdaq, and the New York Stock Exchange (NYSE).&nbsp;
Spot ETH ETFs make it easier for investors and institutions to access Ethereum within a traditional financial setting. Fund managers can allocate part of their portfolio to Ether ETFs rather than investing in Ethereum directly.&nbsp;
In the first quarter of this year, several ”big fish institutions,” including the <a href="https://insidebitcoins.com/news/state-of-wisconsin-invests-164-million-in-spot-bitcoin-etfs-as-big-fish-institutions-endorse-btc" target="_blank" rel="noopener noreferrer nofollow">State of Wisconsin</a> and <a href="https://insidebitcoins.com/news/hedge-fund-millennium-management-reveals-2-billion-holdings-across-five-spot-bitcoin-etfs" target="_blank" rel="noopener noreferrer nofollow">Millennium Management</a>, revealed investments in spot Bitcoin ETFs.
 The hope is that mega fund managers like them will soon also be piling into Ether ETFs.&nbsp;
<h2 id="span-style-font-weight-400-who-are-issuing-spot-ether-etfs-span">Who Are Issuing Spot Ether ETFs?&nbsp;</h2>
Eight Ether ETFs are expected to start trading on Tuesday. The issuers include Wall Street giants BlackRock, Fidelity, Franklin Templeton, and VanEck.&nbsp;
Crypto-native firms such as ARK Invest &amp; 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also among the issuers.
The majority of the Ethereum ETFs use Coinbase as a custodian. VanEck is also tapping the Gemini exchange for clearing infrastructure, while Fidelity will self-custody its Ether for the ETF.&nbsp;
Each of these ETFs is offered by a renowned fund manager using professional market makers to create and redeem shares.&nbsp;
<h2 id="span-style-font-weight-400-how-much-are-the-fees-for-spot-eth-etfs-span">How Much Are The Fees For Spot ETH ETFs?&nbsp;</h2>
The ETF issuers have set varying fees to gain a competitive edge in what is popularly known as the “fee war.”&nbsp;
BlackRock filed an amended S-1 registration statement on July 27, revealing a 0.25% fee for its ETF. However, the asset manager will impose a 0.12% fee for the first $2.5 billion in net assets.&nbsp;
Fidelity has also set its fee at 0.25% but will slash the fees entirely for at least 12 months. VanEck and Bitwise have set their fees at 0.20% but will also slash them initially.&nbsp;
The 21Shares Core Ethereum ETF has a 0.21% fee with zero fees for the first 12 months or until the fund hits $500 million in net assets.&nbsp;
Invesco Galaxy has set a 0.25% fee with no waiver period, while Franklin Templeton has the lowest fee at 0.19%.&nbsp;
The Grayscale Ethereum Trust (ETHE) has the highest fee at 2.50%, similar to its Bitcoin ETF. However, its smaller “mini trust ETF” has a lower fee of 0.25%.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Okay everyone. Here are the details for the <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Ethereum</a> ETFs that we expect to launch next week. We are only missing details for Proshares's ETF. 7 of the 10 funds have fee waivers. <a href="https://t.co/5v3QnHOeub" rel="noopener noreferrer nofollow">pic.twitter.com/5v3QnHOeub</a>
 — James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1813693107214717181?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 17, 2024</a>
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<h2 id="span-style-font-weight-400-is-there-staking-span">Is There Staking?&nbsp;</h2>
While spot Ether ETFs are not allow to offer staking right now, SEC Commissioner Hester Pierce has said that could be reconsidered.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 NEW: SEC Commissioner Peirce tells me Ethereum ETFs being able to stake could be open to reconsideration
 "I think certainly something like staking, or any feature of the product … those are always open for reconsideration as far as I'm concerned" <a href="https://t.co/SFUTPcX80z" rel="noopener noreferrer nofollow">pic.twitter.com/SFUTPcX80z</a>
 — Zack Guzmán (@zGuz) <a href="https://twitter.com/zGuz/status/1813541471049404659?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 17, 2024</a>
</blockquote>
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Earlier this year, issuers including BlackRock, Fidelity, and Franklin Templeton included staking in their ETF filings. But this was rejected by the SEC,&nbsp; which&nbsp;has previously classified staking as an unregulated activity that violates securities laws. 
Last year, Kraken made a <a href="https://insidebitcoins.com/news/kraken-agrees-to-shut-crypto-staking-in-the-us-and-pay-a-30m-fine-to-the-sec" target="_blank" rel="noopener noreferrer nofollow">$30 million settlement</a> with the SEC over its crypto staking-as-a-service program.&nbsp;
The SEC is also pursuing similar charges against Coinbase after <a href="https://insidebitcoins.com/news/sec-files-lawsuit-against-coinbase-for-unregistered-crypto-broker-activity" target="_blank" rel="noopener noreferrer nofollow">suing</a> the exchange in June last year.&nbsp;
<h2 id="span-style-font-weight-400-what-are-the-anticipated-inflows-into-spot-ether-etfs-span">What Are the Anticipated Inflows Into Spot Ether ETFs?&nbsp;</h2>
Spot Ether ETFs will attract $15 billion in new assets during the first 18 months, says Bitwise’s Chief Investment Officer Matt Hougan.&nbsp;
Hougan said in a <a href="https://experts.bitwiseinvestments.com/cio-memos/ethereum-etps-and-the-path-to-a-new-all-time-high?utm_medium=email&amp;_hsenc=p2ANqtz-8tzQxlxZIZD8C5wd2Ci79eqi61dhxCap-pUdEDMJ9l_zmID9sc4ldeDtOqaCIAc_rZQNJrHymWptSFxtt4X2UBcE7E4g&amp;_hsmi=315979958&amp;utm_content=315979958&amp;utm_source=hs_email" target="_blank" rel="noopener noreferrer nofollow">research note</a> that $11 billion would flow out of the Grayscale Ethereum Trust during the first few weeks, but new highs will be in by year’s end.&nbsp;
Hougan also anticipates that inflows to spot ETH ETFs will push the Ethereum prices to $5,000, up about 44% from the $3,463 it traded at as of 10:12 a.m. EST.&nbsp;

5 Things You Need To Know About Spot Ethereum ETFs

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