Spot Ethereum ETF Applicants Updated S-1 Forms, Raising Launch Expectations

Key Points:

• Eight spot Ethereum ETF applicants, including Fidelity and BlackRock, amended SEC filings on June 21.
• Franklin Templeton and VanEck revealed sponsor fees, while Bitwise and BlackRock omitted them.
• Following the SEC’s dropped Ethereum 2.0 investigation, approval is expected by early July.

Eight major spot Ethereum ETF applicants amended their registration statements with the U.S. Securities and Exchange Commission (SEC) on June 21 showing a potential launch of spot Ethereum ETFs in early July.

Spot Ethereum ETF Applicants Revised S-1 Forms

Bloomberg analyst Eric Balchunas reported that the spot Ethereum ETF applicants, including Bitwise, Fidelity, VanEck, Franklin, 21Shares, Grayscale, BlackRock, and Invesco, updated their S-1 documents. Grayscale also filed an amended S-3 registration for its Ethereum Trust and an additional S-1 statement for its mini Ethereum Trust.

Key details from the filings include Fidelity’s seed investment of $4.7 million and BlackRock’s $10 million. Franklin Templeton disclosed a 0.19% sponsor fee, waived for the first $10 billion in assets for six months, while VanEck disclosed a 0.20% fee, waived for the first $1.5 billion in assets until an unspecified date in 2025. Bitwise, which filed its S-1 draft and launched an Ethereum ad earlier in the week, did not include a sponsor fee in its filing.

Balchunas suggested that positioning Ethereum as a “decentralized internet for decentralized applications” could attract traditional investors who are uncomfortable with Big Tech’s control. He also noted that while fees are currently omitted, this is likely temporary, with updates expected closer to the launch date.

Regulatory Milestones and Market Optimism for July Launch

The crypto community is hopeful for an imminent approval, projecting it could happen within the next three weeks or by July 2. This optimism follows the SEC’s decision to drop its 14-month investigation into Ethereum 2.0, marking a significant milestone for the cryptocurrency’s regulatory clarity.

In related news, Standard Chartered plans to open a spot trading desk in London for Ethereum and Bitcoin, making it one of the first global banks to offer spot Ether trading as part of its FX trading unit.