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BlackRock, Franklin, Bitwise, Invesco, Grayscale, Fidelity File Updated Spot Ethereum ETF S-1

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2 months ago

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BlackRock, Franklin, Bitwise, Invesco, Grayscale, and Fidelity have filed amended S-1 forms for their Spot Ethereum ETFs, paving the way for a possible listing next week.

This is a major development in the firms’ quest to receive approval from the U.S Securities and Exchange Commission (SEC) given that the firms are setting their management fees an indication that they are in their final stages of preparing for trading.

BlackRock, Franklin, Bitwise, Invesco, Grayscale, Fidelity Fees

BlackRock, an asset management firm, has quoted 0.25% fee for its spot Ethereum product. In the amended S-1 registration statement, the firm pointed out that it is entitled to “waive all or a portion of the fee for any period(s).” The fee is charged on a daily basis with an annualization and is due and payable on a quarterly basis.

Another major player, Bitwise, also declared a 0.20% fee with an initial discount for 6 months for the first $500 million in assets. Nevertheless, Grayscale charges a higher fee of 2.5% for its Ethereum Trust as compared to the other issuers. Grayscale’s mini Ethereum ETF, however, which is also expected to be launched at the same time as the others, will have a 0.25% fee with a waiver of up to $2 billion or up to 12 months.

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Invesco Galaxy charges a fee of 0.25%, which is equal to BlackRock, while VanEck charges 0.20%. However, while Invesco Galaxy does not offer a waiver, VanEck offers a$1.5 Billion or 12 months waiver. Out of all the firms, Franklin Templeton has the lowest fee set at 0.19% with a waiver of $10 Billion until January 31st 2025. Fidelity also introduced 0.25% fee but the company declared it is going to exempt from this fee up to the end of 2024. 

Earlier today, the ETF issuer 21Shares had revealed a 0.21% fee for its Ethereum ETF, which will be exempt for the first six months or until the asset of the trust will be $500 million.

Spot Ethereum ETFs Expected Launch Approval

Several sources suggest that the Spot Ethereum ETFs will start trading from Tuesday. This comes after the US Securities and Exchange Commission (SEC) gave the green light to critical 19b-4 forms for eight physically settled Ethereum ETFs on May 23. 

It is a requirement that any issuers must have their registration statements effective before they can start selling securities.

According to the senior Bloomberg ETF analyst Eric Balchunas, the SEC asked for the final S-1 forms from the issuers and planned to declare effectiveness on July 22, with the launch following on July 23. This timeline indicates that the firms are in the last cycle before they complete the approval process with the SEC.

SEC Approves Grayscale and ProShares

The US SEC has given the green light to two spot Ethereum exchange-traded funds (ETFs) namely Grayscale Ethereum Mini Trust and ProShares Ethereum ETF to list on the New York Stock Exchange (NYSE)’s Arca electronic platform as revealed on 17th July.

The approval of the Form 19b-4 filing allows NYSE trade the funds on behalf of the company. Nevertheless, the issuers have to wait for the final comments on the S-1 filings of the ETFs before the spot products can start trading.

Grayscale revealed its intention to transfer the shares of the new Mini Trust to the owners of the ETHE fund. The Grayscale Ethereum Trust was launched in 2017 and was one of the earliest ways institutional investors could invest directly in Ethereum. Therefore, eight spot Ether ETFs are set to receive the final regulatory nod as early as July 23 after weeks of discussions with the SEC and changes to the S-1 filings of the funds.

Read Also: Polygon Price Prediction: MATIC Eyes End-of-Correction Trend With This Breakout

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Binance CEO Says Institutional Investors Grew 40% This Year

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4 hours ago

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September 19, 2024

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Binance CEO Richard Teng has revealed that the crypto exchange’s institutional and corporate investors grew by 40% this year. This development again highlights how much institutions have continued to gain exposure to crypto assets, especially since the spot Bitcoin and Ethereum ETFs launched.  However, Richard Teng is confident that institutional crypto adoption is just getting started.

Binance CEO Says Exchange Recorded 40% Growth

Teng revealed during an interview at the Token2049 conference in Singapore that the crypto exchange has recorded a 40% increase in institutional and corporate investors this year. However, he added that institutional allocation to crypto is just the tip of the iceberg and is only getting started.

The Binance CEO expects that more institutions will crypto to invest in crypto assets as time goes on. He added that many of them are still doing their due diligence, which is holding them back from gaining exposure to these digital assets.

Richard Teng believes that regulatory clarity will provide certainty to these institutions and other mainstream users, increasing liquidity in the crypto space. Meanwhile, he highlighted the effect of institutions investing in crypto assets as one of the reasons why Bitcoin hit a new all-time high (ATH) of $73,000 earlier in March.

Indeed, these institutions played a major role in Bitcoin hitting a new ATH before the halving event. The approval of the Spot Bitcoin ETFs in January this year caused new money from these institutions to flow into the BTC ecosystem. These inflows ultimately led to a parabolic price rally for the flagship crypto, reaching $73,000.

Spot Bitcoin ETFs Are Far From Their Peak

Nate Geraci, the President of the ETF Store, shared a sentiment similar to the Binance CEO when he recently suggested that the Spot Bitcoin ETFs have yet to reach their peak. SoSoValue data shows that the Bitcoin ETFs have recorded net inflows of $17.44 billion since they launched. BlackRock and Fidelity, the most successful ETF issuers, already have over $21 billion and $10 billion in assets under management (AUM).

However, Geraci is confident they can still achieve much more success, noting that most wirehouses have yet to approve these Bitcoin ETFs. These wirehouses refer to major brokerage firms that have a global reach. Therefore, just like the Binance CEO predicts, more institutional investors will continue to allocate to crypto as time passes.

It is worth mentioning that other crypto ETFs besides Spot Bitcoin and Ethereum ETFs could launch soon enough. Asset managers VanEck and 21 Shares already filed to offer a Spot Solana ETF. Meanwhile, Grayscale has launched its Grayscale XRP Trust, which the asset manager could eventually convert to a Spot XRP ETF.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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SOL Price Jumps 5% As Solana Seeker Mobile Goes Live With AI Features

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8 hours ago

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September 19, 2024

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SOL, the native cryptocurrency of the Layer-1 blockchain Solana, has surged by 6% in the last 24 hours amid a huge announcement regarding Solana Mobile 2.0. As a result, the SOL price once again moved closer to $140. This Web3 mobile device from Solana – Solana Seeker – comes with an enhanced and secure vault facility as well as new AI features.

SOL Price Shoots Amid Major Announcement

The SOL price is currently trading 5.97% up at $138.8 with a market cap of $65 billion. As we know, the Solana Price has been flirting around $150 levels over the past five months as the meme coin mania on the Layer-1 blockchain fades while shifting to the Tron blockchain network.

Currently, there’s been a huge FUD in the market over Solana’s economic design which has been putting some selling pressure on the SOL cryptocurrency. Some reports also suggested that Solana would be the next Terra LUNA. But Cyber Capital founder and CIO Justin Bons called out this fear-mongering calling these concerns as exaggerated and baseless.

Currently, the SOL price is trading at crucial support levels breaking which could lead to a major correction. Popular trader Peter Brandt shared his observation about Solana while warning that if the support level fails, it will trigger the completion of a larger rectangular consolidation pattern, while potentially driving the SOL price down to $80.

Solana Seeker Mobile 2.0 – What It Offers?

In the latest announcement earlier today, Solana Mobile announced the launch of the Solana Seeker Mobile 2.0, a next-generation Web3 mobile device. This new handset seamlessly integrates hardware and software while offering a lighter and brighter build with an improved camera and longer battery life at a more accessible price.

The Solana Seeker Mobile comes along with the new Seed Vault Wallet developed in partnership with Solflare Wallet. This mobile-first wallet hosts features like double-tap transactions, secure self-custody, and a smooth user experience.

Moreover, Solana has also updated its Mobile dApp Store for improved user navigation and mobile tracking. The Seeker mobile device provides exclusive web3 experiences, including DeFi, payments, NFTs, and games. It also comes along with the Seeker Genesis Token, granting VIP access to content and rewards within the Solana ecosystem. The community is looking forward to how the Seeker token would potentially impact the SOL price ahead.

As the Solana Seeker Mobile offers connections to dApps, DeFi, and more, builders can leverage the growing interest in the Solana community. Recently, Solana also unveiled a major update for the Solana developer community with the ZK Compression going live.

Seeker also extends Solana’s AI integration, with tokenized AI agents interacting on-chain for new engagement possibilities. Moreover, users can earn using DePIN apps such as Helium Mobile, which gives exclusive coverage and network mapping opportunities.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ex SEC Official Blasts US SEC Amid Rari Capital Settlement Charges

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12 hours ago

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September 19, 2024

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An ex-SEC official has raised concerns over the regulatory body’s approach to digital assets, coinciding with a recent settlement involving the decentralized finance (DeFi) platform, Rari Capital.

Michael Liftik, an ex SEC official and current partner at law firm Quinn Emanuel, emphasized the agency’s reluctance to issue clear guidelines for digital assets, while pursuing enforcement actions against firms in the sector. His remarks have sparked further debate on the SEC’s regulatory strategy.

Rari Capital Settlement with the SEC

The SEC has announced it had settled charges against Rari Capital and its co-founders. The DeFi platform, which offered yield-bearing services to crypto investors, faced accusations of misleading investors and engaging in unregistered broker activity. 

Rari Capital’s Earn pools, marketed as being able to autonomously manage and rebalance investments, were found to require manual intervention, contradicting the firm’s claims.

The settlement also covered activities related to Rari’s Fuse pools, with the agency stating that the co-founders, Jai Bhavnani, Jack Lipstone, and David Lucid, were involved in broker activities without proper registration. At its peak, the platform held over $1 billion in assets. Though Rari Capital and its executives neither admitted nor denied the charges, they agreed to cease breaking securities laws in the future.

Ex SEC Official Blasts Approach to Enforcement

Liftik’s criticism of the U.S. Securities and Exchange Commission’s approach resonates with broader discontent within the crypto industry. He highlighted the agency’s preference for enforcement actions over rulemaking or providing clear guidance.

In addition, the ex-SEC Official noted that the agency’s reliance on a “whack-a-mole” enforcement strategy, where firms are targeted one by one, creates a difficult operating environment for companies trying to comply with evolving rules.

This criticism comes as the U.S. Securities and Exchange Commission continues to scrutinize decentralized finance platforms. Over recent years, several firms, both centralized and decentralized, have been charged with securities violations, reinforcing Liftik’s argument. The agency has made it clear that labeling a platform as “decentralized” or “autonomous” does not exempt it from securities laws.

Rari Capital’s History and Hack Incident

Rari Capital’s legal troubles were compounded by a significant exploit in May 2022, when its Fuse borrowing and lending platform was hacked, leading to the theft of $80 million.

As a result, the hack forced the firm to halt new deposits and begin winding down the platform, leading to its eventual shutdown.

In the agency’s settlement, the agency acknowledged the firm’s cooperation in returning performance-based fees to affected users and its remedial efforts in response to the hack. The settlement with Rari Capital Infrastructure LLC, which took over the firm after the hack, further stipulated that the company must refrain from violating securities laws in the future.

Growing Regulatory Divide in U.S. Crypto Legislation

The U.S. Securities and Exchange Commission’s latest actions come amid an ongoing debate in Congress over crypto regulation. Recent hearings have exposed a divide among lawmakers regarding how the digital asset industry should be regulated. A memo circulating in Congress suggests that some Democratic leaders view crypto as a partisan issue, labeling it as an innovation aligned with “extreme MAGA Republicans.”

Concurrent with the ex-SEC official statements, this political divide has heightened tensions as regulators and lawmakers attempt to craft comprehensive crypto legislation. Proposals such as the FIT 21 bill, which aims to classify digital assets and modernize securities laws, remain a focal point of debate.

Critics argue that the current regulatory environment under the Biden administration is stifling innovation, while proponents of tighter regulations advocate for stronger investor protections.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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