Ethereum ETF: SEC Approves 2 New Funds

The SEC has just approved two new Ethereum ETFs: the Grayscale Ethereum Mini Trust and the ProShares Ethereum ETF. This decision marks an important milestone for the cryptocurrency industry and crypto investors.

[PN] SEC APPROVES GRAYSCALE SPOT ETHEREUM MINI ETF

ORDER GRANTING APPROVAL OF PROPOSED RULE CHANGES TO LIST AND TRADE SHARES OF THE GRAYSCALE ETHEREUM MINI TRUST AND PROSHARES ETHEREUM ETF

— Phoenix » PhoenixNews.io (@PhoenixNewsIO) July 17, 2024

The SEC finally approves Ethereum ETFs

The SEC has given the green light to two new exchange-traded funds based on Ethereum:

• the Grayscale Ethereum Mini Trust,
• the ProShares Ethereum ETF.

They will be listed on the NYSE Arca platform.

Specifically, the approval was obtained via form 19b-4, thus allowing NYSE Arca to launch the trading of these funds. However, trading cannot commence immediately. It is necessary to wait for comments on the respective S-1 filings of these Ethereum ETFs before trading can begin.

A closer look at the strategies of Grayscale and ProShares

The Grayscale Ethereum Mini Trust stands out for its asset allocation strategy. It is designed to ensure stability at launch. James Seyffart, a Bloomberg analyst, clarified that this digital asset will be funded with 10% of the assets of the Grayscale Ethereum Trust (ETHE). The goal: to mitigate potential capital outflows.

On the other hand, the ProShares Ethereum ETF arrives slightly later on the market. Nevertheless, it is part of a wave of eight funds awaiting final approval from the SEC.

The upcoming ETFs proposed by companies like Franklin Templeton, VanEck, and Fidelity will initially offer a fee-free period, unlike the Grayscale offerings which will maintain a higher fee structure of 2.5%. This highlights the value associated with the Grayscale brand and its expertise in crypto investment management.

The approval of Ethereum ETFs by the SEC thus marks a significant advancement for crypto investors. With several ETH ETFs awaiting final approval, the digital assets market offers new opportunities to investors while ensuring strict regulation for their protection.