In a highly anticipated move, 21Shares has submitted an amended S-1 form for its Spot Ethereum ETF, revealing crucial details about the Trust’s operations and fees. This announcement, made on Wednesday, July 17, sets the stage for what could be a significant development in the crypto investment world.
Sponsor Fee and Market Positioning
21Shares Core Ethereum Trust (CETH) will implement a sponsor fee of 0.21% of its Ethereum (ETH) holdings, as outlined in the SEC filing. This fee aligns closely with market standards, following VanEck’s 0.20% fee, which has sparked competitive pricing discussions among issuers. Additionally, 21Shares has proposed a six month fee waiver to attract investors, effective until the Trust’s assets reach $500 million. Bitwise has offered a similar fee waiver, though specific sponsor fee details remain undisclosed. Invesco Galaxy revealed a 0.25% fee in a July 9 filing, placing 21Shares second in the competitive fee structure for Spot Ethereum ETFs.
Launch Timeline and Market Anticipation
The Ether ETF is expected to launch on July 23. Bloomberg reported that the final round of S-1 amendments, including fee details, was due on July 17. Eric Balchunas, a Senior Bloomberg ETF analyst, anticipates the launch next Tuesday if no last-minute issues arise. Preliminary SEC approval for at least four issuers has set the stage for forthcoming developments. The approval process has involved updating critical 19b-4 forms, with the historic May 23 approval of filings for eight applicants, including BlackRock, VanEck, 21Shares, and Grayscale.
Strategic Moves by 21Shares
21Shares’ proactive approach in structuring its ETF to appeal to potential investors in the crypto market is evident from the amended S-1 filing. The company was the first to submit an updated S-1 for its Ethereum ETF application, paving the way for other issuers to follow. The market now awaits S-1 amendments from Grayscale, Bitwise, BlackRock, Invesco Galaxy, Franklin Templeton, and VanEck. However, with VanEck and Invesco Galaxy having previously disclosed their fees, further updates may be minimal.
Significant Crypto Events and Market Attention
The anticipated Spot Ethereum ETF launch coincides with significant crypto events, such as The Bitcoin Conference in Nashville on Tuesday, July 23. The timeline is expected to draw considerable market attention, especially with Donald Trump scheduled to attend the conference. Trump’s presence is expected to heighten the buzz around the ETF launch, adding to the anticipation and excitement in the crypto community.
What’s Next for Ethereum ETF?
As the crypto world eagerly awaits the launch, the SEC’s preliminary approval of at least four issuers signals imminent developments. The historic May 23 approval of 19-b4 filings for applicants like BlackRock, VanEck, 21Shares, and Grayscale marked a pivotal moment. With the final procedural checks underway, the launch of the Spot Ethereum ETF by 21Shares is poised to make a significant impact on the market.
Conclusion
21Shares is leading the charge with its strategic and competitive approach to launching its Spot Ethereum ETF. With a low sponsor fee, a six month waiver to attract investors, and the backing of preliminary SEC approval, the company is set to make waves in the crypto investment world. As the market gears up for the launch on July 23, all eyes will be on 21Shares and the significant crypto events unfolding around this date.
