The SEC requests the Ether ETF launch's final S-1 submissions
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The SEC requests the Ether ETF launch’s final S-1 submissions

Nxtgen Virtue , , ,

According to Bloomberg analyst Eric Balchunas, the SEC has required issuers to submit their final S-1 forms by July 16, with the new Ether funds set to start on July 23. According to reports, the US Securities and Exchange Commission (SEC) has issued final instructions to asset managers preparing to establish Ether exchange-traded funds (ETFs).

According to Bloomberg analyst Eric Balchunas, the Commission has asked issuers to submit their final S-1 files by July 16, with the new funds scheduled to begin on July 23. The final filings must include the fees that issuers intend to charge for their new cryptocurrency funds. 

On May 23, the government approved the issuers’ 19-b form, which proposed regulatory adjustments to allow cryptocurrency-based investment vehicles. Asset managers must now obtain clearance for their initial securities registration S-1 forms. To address regulatory concerns, issuers such as ARK Investments and Fidelity have removed staking from their Ether ETF plans in recent weeks. 

ETFs Fees

Ether ETFs will have a variety of fee structures. Invesco and Galaxy set management costs at 0.25%, which is somewhat higher than VanEck and Franklin Templeton’s reported fees of 0.20% and 0.19%, respectively.

These prices are much cheaper than Grayscale’s Ethereum Trust, which charges 2.50% administration fees. Grayscale intends to create a new spot Ether ETF but has yet to reveal the new costs. The SEC’s clearance process for Ether ETFs is expected to follow a similar pattern to that of Bitcoin ETFs. Analysts believe that Ether ETFs would generate significant investor interest, with up to $10 billion in new inflows expected in the months following its launch.

The Bitcoin market saw $15 billion inflows. According to Tom Dunleavy, a managing partner at crypto investment firm MV Global, Ethereum will likely reach $5 billion to $10 billion. At the time of writing, Ether is trading at $3,394, up 6.1% from $3,424.

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