Bitrabo Editorial
Spot Ethereum ETFs (Exchange-Traded Funds) are set to start trading on Tuesday, July 23, 2024, as officially announced by the Chicago Board Options Exchange (CBOE) after much anticipation and speculation.
Cboe to Introduce Five Ethereum ETFs
CBOE revealed the launch of five spot Ethereum ETFs, including Fidelity (FETH), VanEck (ETHV), 21Shares (CETH), Invesco (QETH), and Franklin Templeton (EZET), scheduled to go live next week on Tuesday. The announcement was made through recent new issue notifications posted on July 19.
The exchange stated, “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.”
Experts, including Bloomberg’s Eric Balchunas, had previously suggested July 23 as a potential launch date for the Ethereum ETFs, following a request by the United States Securities and Exchange Commission (SEC) for final S-1 filings from issuers.
While awaiting SEC approval for the S-1 forms to register the ETFs for public sale, it’s worth noting that the SEC approved the 19b-4 forms of ETH ETF issuers back in May 2024. The management fees disclosed by most ETF issuers, temporarily waived or discounted, may impact market share distribution upon trading commencement.
BlackRock’s spot ETH ETF, ETHA, plans to charge a 0.25% management fee, reducing it to 0.12% during the initial launch or until assets reach $2.5 billion.
Ethereum Price Highlights
The price of Ether (ETH) around $3,485 has remained relatively unaffected by the Ethereum ETF announcement, indicating it was already factored in. With capital inflows anticipated into Ethereum ETFs, a potential positive impact on the cryptocurrency’s value and the overall market is expected, drawing parallels to the effect of Bitcoin ETFs in 2024.