After months of delay, the United States Securities and Exchange Commission (SEC) unanimously authorized a rule change to list and trade shares of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF. In a filing dated July 17, the SEC approved the listing and trading two spot Ether ETFs on the NYSE Arca Inc., as stated in the document. Final notice and comment on the S-1 filings are required, though, as the government made clear.
Spot Ethereum ETFs Sponsor Fee Wars
James Seyffart, an ETFs specialist at Bloomberg, predicts that next week will likely see the launch of trading for the twelve-spot Ether ETF issuers. Sponsor fees for the Grayscale Ethereum Mini Trust (ETH) will begin at 0.12% and increase to around 0.25% after the waiver. In contrast, the Grayscale Ethereum Trust (ETHE) will keep running at a 2.50% charge. Consequently, Seyffart highlighted that the ETHE, which has $9.98 billion in total assets under administration, will experience similar losses as the GBTC. Notably, 10% of ETHE will be spun off and transferred into it to launch ETH.
The SEC has approved Grayscale Ethereum Spot ETFs Mini Trust’s Form 19b-4, and Grayscale is pleased to announce this. According to a spokeswoman from the company, the Grayscale team is actively working with the SEC. To secure complete regulatory approval for Ethereum token sales in the US. However, most Spot Ether ETF providers charge after waiving the initial fee. A sponsor fee ranges from 0.19 percent to 0.25 percent. Sponsor fee information for the ProShares Ethereum ETF is currently unavailable.
Impact on Crypto Market
The whole cryptocurrency market is bracing for next week’s anticipated listing and trading of spot Ether ETFs in the US. Grayscale Decentralized AI Fund is the newest cryptocurrency investment product that Grayscale has already released. Remember that TAO, NEAR, RNDR, FIL, and LPT will receive investments from the Grayscale Decentralized AI Fund.
The much-awaited alt season might happen at any moment, given the predicted influx of billions of dollars into the Ethereum Spot ETFs industry in the following months. In addition, Solana (SOL) and other spot crypto ETFs are expected to apply in the subsequent quarters.
According to the on-chain statistics, there has been a 600,000 decrease in non-zero Bitcoin addresses in the last month, suggesting that more crypto money is being redirected to altcoins. The technical analysis shows that Bitcoin’s dominance has already indicated an impending macro reversal, supported by a weekly bearish divergence on the Relative Strength Index (RSI).
Cryptocurrency market implications
There will likely be far-reaching consequences for the cryptocurrency market when Ethereum spot ETFs are introduced. The price of Ethereum is anticipated to rise as one of the first noticeable effects. There will likely be a dramatic increase in Ethereum’s price due to the rise. Demand from institutional and ordinary investors in these new investment vehicles is growing. If this happens, Ethereum’s price might start climbing, which would entice more investors and cause the price to rise even more.
Also, if Ethereum spot ETFs are approved, a big alt season could start. The term “alt season” describes when non-Bitcoin cryptocurrencies (altcoins) see substantial price increases, frequently surpassing Bitcoin. The success of Ethereum is a key player in the alternative cryptocurrency market. It often positively affects other cryptocurrencies linked to or based on its blockchain.
Final Thoughts
The SEC’s approval of two Ethereum spot ETFs is a watershed event for the cryptocurrency market. As a result, more institutional investment is possible, and this shows. Cryptocurrencies are being accepted in the conventional financial system. Ethereum ETFs still have a ways to go before they reap the rewards. The rewards might include price increases and the start of a new alt season.
Investors and market participants will actively monitor the market’s reaction and performance of these exchange-traded funds (ETFs). Should they be successful, Ethereum ETFs have the potential to pave the way for other cryptocurrencies, resulting in a more robust and varied financial ecosystem. Approval of these ETFs is a significant milestone for widespread adoption. Adoption and integration of the constantly changing cryptocurrency industry.
