Ethereum ETF launch imminent: 21 Shares adjusts strategy, SEC review underway

Franklin Templeton, the fund company, was the first to announce a 0.19% sponsorship fee for its ETF products.

On May 31, six companies submitted S-1 registration statement updates for their spot Ethereum ETFs, in which 21 Shares specifically removed its cooperation with Ark Invest.

The relevant documents have renamed the fund originally named "Ark 21Shares Ethereum ETF" to "21 Shares Core Ethereum ETF", and Ark Invest is no longer mentioned in the document. In previous filings, Ark Invest was described as a subadviser to the fund.

Ark Invest has not yet commented on the changes.

Other modification details

It is reported that Bitwise, Fidelity, Invesco Galaxy, VanEck and Franklin Templeton also submitted their modification documents.

Franklin Templeton Funds clarified a 0.19% sponsorship fee for the first time in its revised filing, making it the first fund issuer to publish a percentage-based sponsorship fee.

Bloomberg ETF analyst Eric Balchunas observed that there was no “fee war” among applicants, unlike previous Bitcoin spot ETF launches where there were competitive fee reductions and temporary discounts. The so-called “price war” over sponsorship rates did not occur.

The revised document makes clear that the companies involved in each fund will not participate in the pledge business. At the same time, the document initially prohibits fund creation and redemption operations in the form of spot funds, but also mentions that such transactions may be allowed if approved by future regulatory agencies.

Revenues from initial seed sales were mentioned or reiterated for the first time in some of the documents. At the same time, many of the filings revealed their stock trading symbols for the first time.

Previous Amendment

The U.S. Securities and Exchange Commission (SEC) approved the 19-b4 filing on May 23, which brings the launch of the spot Ethereum ETF one step closer, and some experts predict that it may be officially launched by the end of June.

BlackRock was the first to submit an amendment to its iShares fund on May 29, which included details such as seed purchase amounts, additional partners and a fixed maximum sponsorship fee. Following this, Grayscale also revised its S-3 statement on May 30.

Recent revisions indicate that all expected spot Ethereum ETF issuers have complied with the month-end deadline set by the U.S. Securities and Exchange Commission (SEC). The SEC will next review these applications and may request further revisions before the funds can be officially launched.

Balchunas expects the entire process to take several weeks, with the fund expected to launch no later than July 4.

Conclusion Language:

With the adjustment of 21 Shares to the ETH ETF and the updates of S-1 registration statements by many companies, the issuance process of spot Ethereum ETF is gradually advancing. Although Ark Invest's exit has attracted market attention, overall, all participants are actively meeting the SEC's regulatory requirements.

Meanwhile, forecasts from analyst Balchunas provide the market with an expected timeline, with the final launch of the fund expected to be around the corner. This development not only provides investors with new investment channels, but may also become a sign of further maturity in the cryptocurrency market.

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