Cboe Confirms July 23 Launch for Five Spot Ethereum ETFs, Setting Stage for Crypto Market Shake-up
On July 19, 2024, the Chicago Board Options Exchange (Cboe) officially announced that five spot Ethereum exchange-traded funds (ETFs) will begin trading on July 23, pending regulatory effectiveness. This highly anticipated launch comes just months after the approval of spot Bitcoin ETFs in the United States, marking another significant milestone for cryptocurrency integration into traditional financial markets.
The five ETFs set to commence trading are:
- 21Shares Core Ethereum ETF (CETH)
- Fidelity Ethereum Fund (FETH)
- Franklin Ethereum ETF (EZET)
- Invesco Galaxy Ethereum ETF (QETH)
- VanEck Ethereum ETF (ETHV)
This development follows the U.S. Securities and Exchange Commission’s (SEC) approval of rule changes permitting the listing of several spot Ether ETFs on May 23. The final hurdle for these products was the SEC’s sign-off on each fund issuer’s S-1 registration statements, which is expected to occur on July 22.
In a bid to gain early market advantage, most ETF issuers have announced plans to temporarily waive or discount fees. For instance, Fidelity set its fee at 0.25% but will waive it through the end of 2024. Franklin Templeton will waive its fee until January 31, 2025, on the first $10 billion of the fund’s assets. VanEck plans to waive its fee for a year after listing for the first $1.5 billion in assets.
Industry analysts anticipate significant inflows into these Ethereum ETFs. Tom Dunleavy, an institutional analyst, predicts inflows could reach $10 billion this year, with potential monthly capital flows of up to $1 billion. This surge in demand could have substantial implications for Ethereum’s price and market dynamics.
The launch of spot Ethereum ETFs comes at a time when the Ethereum Exchange Reserve, which tracks the amount of Ether available for purchase on cryptocurrency exchanges, is at multi-year lows. This reduced liquidity, coupled with increased institutional demand, could potentially lead to a supply crunch and increased price volatility.
