SEC Approves ProShares and Grayscale Mini Spot Ether ETFs – Crypto News – Crypto News
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SEC Approves ProShares and Grayscale Mini Spot Ether ETFs SEC Approves ProShares and Grayscale Mini Spot Ether ETFs

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SEC Approves ProShares and Grayscale Mini Spot Ether ETFs – Crypto News

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Experts say spot Ether ETFs will begin trading on July 23.

The U.S. Securities and Exchange Commission (SEC) continues to approve prospective spot Ether ETFs.

On July 17, the SEC approved the 19b-4 applications for the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF to list and trade shares for exchange-traded funds (ETFs) holding spot Ether.

“After careful review, the Commission finds that the Proposals are consistent with the Exchange Act and rules and regulations thereunder applicable to a national securities exchange,” the SEC said. “It is therefore ordered… that the proposals be, and hereby are, approved.

The SEC emphasized that applications met its requirements for the exchange-traded funds (ETFs) to “prevent fraudulent and manipulative acts and practices” and “protect investors and the public interest.” The regulator also noted a “consistently high correlation” between spot Ether markets and ETH futures markets trading on the Chicago Mercantile Exchange (CME).

The Grayscale Ethereum Mini Trust will hold 10% of the shares from the Grayscale Ethereum Trust — which is expected to convert into an exchange-traded fund (ETF) next week.

Spot Ether ETF launches loom

The news comes as analysts tip that 10 spot Ether ETFs will enter the markets on July 23.

The SEC approved the 19b-4 filings for eight prospective ETF issuers in May, paving the way for the funds to commence trading once the SEC greenlights their S-1 registration statements.

On July 15, Eric Balchunas, an ETF analyst at Bloomberg, tweeted that the SEC requested that ETF issuers provide final S-1 registration statements on July 17, teeing the funds up for a likely July 23 launch. On the same day, Reuters reported that three issuers had already received preliminary approval pending final revisions of their S-1 filings, citing “three industry sources.”

According to Nate Geraci, co-founder of the ETF Institute, all applicants have since updated their S-1 filings.

The sources said the spot Ether ETFs from BlackRock, VanEck, and Franklin Templeton are on track to receive final approval on July 22, with trading likely beginning the next day. One of the sources added that all of the funds are expected to begin trading at the same time.

James Seyffart, an ETF analyst for Bloomberg, tweeted that he expects the SEC to approve the S-1 filings next week.

Ethereum’s price is up 10.7% in the past seven days, according to The Defiant’s crypto price feeds.

Grayscale Ethereum Trust stands by uncompetitive fees

Seyffart shared data on the fees of the pending spot Ether ETFs, seven of which will offer initial discounts. Each of the funds except the Grayscale Ethereum Trust (ETHE) will charge between 0.19% and 0.25% after discounts, while ETHE will charge a whopping 2.50%.

“Think this is *huge* miss by Grayscale,” said Geraci. “If you’re gonna charge *2.5%* on ETHE, need to undercut market w/ mini trust.”

“Grayscale not lowering at all,” said Balchunas. “This means they 10x higher than competition.”

Related: Will Spot Ethereum ETFs Live Up to the Hype? Analysts Weigh In

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