Fidelity, VanEck, and 21Shares have amended their S-1 filings with the U. S. Securities and Exchange Commission (SEC) for their Spot Ethereum ETFs. These submissions come as part of the final approval process mandated by the SEC. They represent a crucial development for the cryptocurrency market.
The asset management companies’ move follows the initial approval of their 19b-4 applications by the SEC on May 23. After the filings, Nate Geraci, the co-founder of the ETF Institute, took to social media to state that the issuers are gearing up for a launch in the coming weeks.
VanEck has already waived its initial fee for the Ethereum ETF and announced a 0.2% charge if assets surpass $1.5 billion. The firm also projected that ETH could reach $22,000 by 2030.
Bitwise was one of the first to upload its new registration form on July 3. In a post on X, Eric Balchunas, a senior Bloomberg ETF analyst, wrote, “First S-1 just rolled in today from VanEck. . they already had their fee so nothing to see here really, they just putting ball back in SEC’s court. Expecting the rest today except for Bitwise who did theirs last week.”
First S-1 just rolled in today from VanEck.. they already had their fee so nothing to see here really, they just putting ball back in SEC's court. Expecting the rest today except for Bitwise who did theirs last week. pic.twitter.com/gF6OZTKIrs
— Eric Balchunas (@EricBalchunas) July 8, 2024
BlackRock, Fidelity, Franklin Templeton, and Grayscale also sent their amended registration statements on Monday later in the day. VanEck said it would first waive fees for its spot Ethereum ETF, while Franklin Templeton set its fee at 0.19%. Some issuers, for example, BlackRock, have not yet announced their fees.
Balchunas explained on X that this is because the SEC requested the S-1s by July 8 but indicated that listing fees was not necessary at that stage.
Because the SEC asked for the S-1s on July 8th but told issuers the fee wasn't nec yet. They will give guidance back to issuers soon along with the game plan. Then the docs come will come back with fees (and every other blank) filled it and then it's Go time. https://t.co/S4u8HaMckh
— Eric Balchunas (@EricBalchunas) July 8, 2024
“Because the SEC asked for the S-1s on July 8th but told issuers the fee wasn’t nec yet,” Balchunas posted on X later on Monday. “They will give guidance back to issuers soon along with the game plan. Then the docs come will come back with fees (and every other blank) filled it and then it’s Go time.”
ETH Positive Market Reaction
The market has reacted positively to the news of the amended filings, with Ethereum’s price briefly surpassing the $3,000 mark. The introduction of Ether ETFs is expected to provide a new avenue for investors to gain exposure to Ethereum without the need for direct ownership of the cryptocurrency.
Furthermore, the trading volume of Ethereum has surged by 120% during the last day, indicating heightened market activity and increased investor engagement. This surge in interest can be traced back to the approval of similar Bitcoin-based products earlier this year. That laid the groundwork for the current Ether-based offerings.
Technical Insights and Analysis
Analysts note that the successful launch of Ether ETFs could lead to further acceptance and integration of cryptocurrency products within traditional financial markets. Given the advancements made by Fidelity, VanEck, and 21Shares, the market anticipates that other firms will follow suit.
Technical analysis indicates that Ethereum successfully tested and broke the support level between $2,800 and $2,852, trading at $3,024.32 at press time. This price point has emerged as a critical juncture, preventing further declines and encouraging buying activities.
Ethereum’s price action also formed a double-bottom pattern. Its signaling potential exhaustion among sellers and setting the stage for possible upward movements.
The market’s response to these technical indicators is closely watched, especially with Ethereum’s price rebounding above the $3,000 mark. This recovery aligns with broader market sentiments and prepares Ethereum for upcoming financial innovations, which could further enhance its liquidity and market presence.
