The Cboe Exchange has issued a new filing that has confirmed the rising reports that spot Ethereum ETF products will start trading next week.
Several analysts and market observers have expressed optimism regarding the United States Securities and Exchange Commission (SEC) granting its ultimate approval to spot Ethereum ETF trading by July 23. Nevertheless, the recent listing of Cboe has provided further evidence of the previously expressed optimism.
Spot Ethereum ETF Trading on The Way
ETF Store President Nate Geraci emphasized the new listing of CBOE and stated that it is “almost go time” for Ethereum ETF trading.
Also, Fidelity Investments, Franklin Templeton, Invesco, 21Shares, and VanEck were among the companies that contributed spot Ethereum ETFs to the listings. Their initial trading day was July 23, which indicated the certainty that the approval that spot Ethereum ETF filers are seeking is forthcoming as expected.
These investment asset management firms have invested significant time and resources to guarantee that they adhere to the Commission’s standards to achieve this status.
BlackRock, Franklin, Bitwise, Invesco, Grayscale, and Fidelity have recently submitted revised S-1 forms for their Ethereum ETFs in anticipation of a potential listing next week. The management fee was the primary detail in their filings, as they had reached the final phases of preparing for trading.
Sponsor Fee Conflict for Spot Ethereum ETFs
BlackRock, the spot Bitcoin ETF market leader, has set a cap on its Ethereum ETF sponsor charge at 0.25%. This fee is 31% higher than Franklin Templeton’s fee of 0.19%. BlackRock also noted that it may waive all or a portion of the cost for a specific duration. The fee is assessed daily with an annualization and is due and payable every quarter.
Additionally, Bitwise declared a 0.20% fee for the first $500 million in assets, with an initial discount of six months. VanEck had previously announced that it would waive all ETF fees until 2025 or until the assets reach $1.5 billion, whichever occurs first. 21Shares seeks a unitary sponsor fee equivalent to 0.21% of its Ethereum ETF.
Conversely, Grayscale mitigated this exorbitant fee by charging a mere 0.15% for its Grayscale Ethereum Mini Trust ETF.
All of their management fees ultimately fell from 0.19% to 0.25%. Nevertheless, Grayscale’s announcement that its fee would be 2.5%, which is exactly ten times higher than the others, caused considerable amusement throughout the crypto ecosystem. Geraci believes that Grayscale is potentially replicating a significant error about GBTC. He decried Grayscale for prioritizing short-term revenue over the long-term.