Cryptocurrency investors were stunned by the SEC’s unexpected approval of spot ETH ETFs. The latest shockwave comes as issuers update their S-1 Forms, signaling that the listing process is reaching its final stages. These updates occurred on the last business day of the week, hinting at the imminent availability of these ETFs on exchanges.
What are the Latest Developments?
The SEC is anticipated to approve the essential S-1 Forms for exchange listings by next week. Traditionally, these listings are expected around July 2. This development will enable investors with a background in conventional markets to trade ETH via ETFs similarly to BTC.
Why is Ethereum Gaining Attention?
Ethereum is poised to garner substantial interest from long-term investors due to its robust growth potential, early adoption by major financial institutions in the Real World Assets (RWA) sector, and its dominant position in the smart contract arena.
User Insights
Key considerations for investors include:
- Monitor ETH prices closely for potential “sell the news” reactions, similar to BTC ETF developments.
- Be aware of the risks associated with net outflows and rapid sales post-listing, as seen with GBTC.
- Evaluate the impact of management fees in the ETF filings, which may be adjusted to zero to mitigate rapid sales.
Grayscale has yet to include the management fee in its ETF application, raising speculation about potential fee adjustments to prevent rapid sales. For ETHE holders eyeing long-term gains, a competitive transaction fee is crucial to deter shifts to lower-cost alternatives, leveraging its liquidity advantage.
Today’s S-1 Form updates do not include transaction fees, suggesting that the final versions will be ready by the end of next Friday, making July 2 the target date for these listings.