Ethereum ETFs Set to Begin Trading on July 23, Cboe Confirms
The Chicago Board Options Exchange (Cboe) has announced that five spot Ethereum exchange-traded funds (ETFs) will start trading on Tuesday, July 23. This news has been confirmed through notices posted on Cboe’s website.
Ethereum ETFs to Begin Trading
The spot Ethereum ETFs that will begin trading on July 23 include the following:
- 21Shares Core Ethereum ETF (CETH)
- Fidelity Ethereum Fund (FETH)
- Franklin Ethereum ETF (EZET)
- Invesco Galaxy Ethereum ETF (QETH)
- VanEck Ethereum ETF (ETHV)
Each listing notice from Cboe reads, “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.”
Regulatory Approval from the SEC
The date of July 23 had been expected for some time. Earlier this week, sources close to the situation mentioned that they expected the U.S. Securities and Exchange Commission (SEC) to give final approvals for these Ethereum ETFs. The SEC had been working on final drafts of filings from various firms.
In May, Ethereum ETFs received initial approvals from the SEC. This was surprising to many, as the SEC had been scrutinizing Ethereum-centric firms and had previously treated Ethereum differently from Bitcoin. Just four months after spot Bitcoin ETFs started trading in the U.S., the SEC decided to approve the Ethereum ETFs.
Now, Cboe is confident that the ETF operators will get their final approvals ahead of the trading date on July 23.
Understanding Ethereum ETFs
An ETF, or exchange-traded fund, is a popular investment vehicle. It allows investors to buy shares that track the price of an underlying asset, such as gold, foreign currencies, or cryptocurrencies like Ethereum. These funds trade on stock exchanges, making it easier for investors to get exposure to various assets.
The SEC surprised the traditional and crypto markets when it approved 11 spot Bitcoin ETFs in January. This approval led to a significant influx of capital into the Bitcoin space. Industry experts had expected the SEC to take longer to approve Ethereum ETFs due to its cautious approach. However, the SEC quickly approved the Ethereum ETFs, and the final paperwork is now being filed. If everything goes smoothly, investors will soon be able to invest in the second-largest digital asset by market cap.
List of Ethereum ETFs and Their Managers
Several major investment firms have received the green light from the SEC to list spot Ethereum ETFs in the U.S. Here is a list of the fund managers and their respective ETFs:
BlackRock
- iShares Ethereum Trust
BlackRock, the world’s largest asset manager, got approval for its iShares Ethereum Trust. The firm first filed an S-1 form for this product in November. BlackRock’s CEO, Larry Fink, is enthusiastic about cryptocurrency and has mentioned the value of having an Ethereum ETF. He also discussed the inevitability of “tokenization.”
Grayscale
- Grayscale Ethereum Trust to Spot Ethereum ETF
Grayscale received SEC approval after filing a proposal in October to convert its Grayscale Ethereum Trust into a spot Ethereum ETF. The current trust operates like a closed-end fund. When it transitions to an ETF, investors will be able to redeem shares more easily. Grayscale’s Bitcoin Trust had previously converted into an ETF, setting a precedent for this change. Additionally, Grayscale’s mini ETH ETF also received approval this week. This mini trust will have lower fees for investors and be seeded with assets from the main, larger ETF.
ARK Invest/21Shares
- ARK Invest Ethereum ETF
ARK Invest, led by Cathie Wood, filed a proposal for an Ethereum ETF in September. This ETF is in partnership with crypto ETF issuer 21Shares, with Coinbase acting as its custodian.
ProShares
- ProShares Ether Strategy ETF
ProShares recently received approval for its ProShares Ether Strategy ETF. Initially, ProShares had applied for futures products but later quietly applied for a spot fund.
Fidelity
- Fidelity Ethereum Fund
Fidelity has shown interest in launching an Ethereum ETF since November. Cboe filed a 19b-4 on behalf of Fidelity, and in March, Fidelity filed its S-1 with the SEC.
VanEck
- VanEck Ethereum ETF
VanEck was the first to file a proposal for an Ethereum ETF in 2021. Although it withdrew the proposal later that year, it has since refiled. VanEck’s Bitcoin ETF has been successful, and the firm even waived its fees to compete better in the market.
Hashdex
- Hashdex Nasdaq Ethereum ETF
Brazilian fund manager Hashdex filed a proposal for its Hashdex Nasdaq Ethereum ETF in September. Hashdex already has several crypto ETFs trading in Brazil. In the U.S., its Hashdex Bitcoin ETF was approved in January and began trading in March.
Franklin Templeton
- Franklin Ethereum ETF
Franklin Templeton entered the race in February when it filed a proposal with the SEC. The firm’s Franklin Bitcoin ETF launched earlier this year under the EZBC ticker.
Invesco/Galaxy Digital
- Invesco Galaxy Ethereum ETF
Invesco, in collaboration with Galaxy Digital, submitted a proposal for an Ethereum ETF in September. Invesco is the sponsor of the product, while Galaxy Digital acts as its execution agent, handling the selling of ETH to cover the ETF’s expenses.
Bitwise
- Bitwise Ethereum ETF
Bitwise filed its S-1 form in March to offer a spot Ethereum ETF. Matt Hougan, Chief Investment Officer at Bitwise, previously predicted that ETH ETFs would launch in December and be more successful if approved later in the year.
Impact on the Crypto Market
The approval and trading of these Ethereum ETFs are expected to have a significant impact on the crypto market. With major investment firms like BlackRock, Grayscale, ARK Invest, and others entering the space, there will likely be increased institutional investment in Ethereum. This could lead to greater market stability and growth in Ethereum’s value.
The approval of Ethereum ETFs also marks a significant shift in the SEC’s approach to cryptocurrency regulation. Initially hesitant, the SEC’s recent approvals indicate a more open stance towards digital assets. This could pave the way for future approvals of other cryptocurrency-based ETFs, further legitimizing the crypto market.
Investors are eagerly awaiting the start of trading on July 23. The launch of these Ethereum ETFs represents a major milestone for the cryptocurrency industry and provides a new avenue for investors to gain exposure to Ethereum. As these ETFs begin trading, it will be interesting to observe how the market responds and how the value of Ethereum is affected.
Conclusion
In summary, the Cboe’s announcement that five spot Ethereum ETFs will begin trading on July 23 is a significant development for the cryptocurrency market. With approvals from the SEC and participation from major investment firms, these ETFs are set to attract substantial interest from investors. This move is expected to enhance the legitimacy and stability of Ethereum and the broader crypto market. As the trading date approaches, all eyes will be on how these new financial products perform and their impact on the market.
