Good News: US SEC Approves Two Ethereum ETF Spot Trades
2024-07-19Bittime - On Wednesday (17/7), the United States Securities and Exchange Commission (SEC) officially approved the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF. Trading for both ETFs is expected to begin next week on NYSE Arca Inc.
Approval of Rule Changes by SEC
After months of delays, the SEC unanimously approved proposed rule changes for listing and trading shares of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF. Based on an SEC filing dated July 17, these two spot Ether ETF issuers were given the green light to begin operating in the market.
However, the SEC emphasized that this approval is still subject to final notice and comment regarding the S-1 filing.
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Competition of Ethereum ETFs Spot Sponsorship Fees
According to Bloomberg ETF researcher James Seyffart, there is a strong possibility that dozens of spot Ether ETF issuers will start trading next week. The Grayscale Ethereum Mini Trust (ETH) will start with a sponsorship fee of 0.12 percent and a post-abandonment fee of approximately 0.25 percent.
On the other hand, Grayscale Ethereum Trust (ETHE) will continue to operate with fees of 2.50 percent. Seyffart stated that ETHE, with total assets under management of about $9.98 billion, would experience a similar decline as GBTC. As much as 10 percent of ETHE will be separated and put into ETH to start its operations.
"Grayscale is pleased to share that the SEC has approved Form 19b-4 of the Grayscale Ethereum Mini Trust. The Grayscale team continues to interact constructively with SEC staff to obtain full approval of the Ethereum spot ETP in the US," said a Grayscale spokesperson.
Meanwhile, most spot Ether ETF issuers have zero initial fees and post-abandonment sponsorship fees of between 0.19 percent to 0.25 percent. The ProShares Ethereum ETF had not released details of its sponsorship fees as of the time of this report.
Impact on Crypto Markets
Ether ETF spot trading expected to begin next week in the United States is predicted to have a significant impact on the entire crypto industry. Grayscale has announced the launch of its newest crypto investment product, called the Grayscale Decentralized AI Fund. Grayscale Decentralized AI Fund will invest in TAO, NEAR, RNDR, FIL, and LPT.
With billions of dollars expected to flow into the Ethereum industry in the coming months, the highly anticipated altcoin season could happen at any time. Additionally, other spot crypto ETF applications, led by Solana (SOL), are expected to be filed in the next few quarters.
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Changes in Bitcoin Dominance
On-chain data shows non-zero Bitcoin addresses declining by more than 600K in the past month, signaling increased crypto cash rotation to altcoins. From a technical perspective, Bitcoin's dominance has signaled an inevitable macro reversal supported by the weekly bearish divergence on the Relative Strength Index (RSI).
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