Author: Ben Strack, Casey Wagner, Blockworks; Translator: Wuzhu, Golden Finance
We are at a historic moment - no, I'm not talking about President Biden's decision to withdraw from the 2024 presidential race.
Another race is about to begin: the battle for U.S. spot Ethereum ETF assets.
Beyond the competition between issuers, this launch also reflects history being made. The first U.S. ETFs that directly hold Bitcoin launched in January. Now, six months later, the Ethereum Fund will represent another milestone.
Let’s review the road to approval of the Ethereum spot ETF:
December 2017: CME launches Bitcoin futures.
February 2021: CME launches Ethereum futures.
October 2021: U.S. securities regulators give the green light to ETFs that hold Bitcoin futures contracts.
June 2022: Grayscale Investments files a lawsuit against the SEC after the SEC refused to convert GBTC into an ETF.
May 2023: Issuer submits Ethereum futures ETF application, then withdraws it.
July/August 2023: Ethereum futures fund applications resurface, with sources noting that the SEC is now ready to consider these products.
August 2023: Grayscale wins its lawsuit against the SEC, ultimately paving the way for the approval of a Bitcoin ETF.
September 2023: Fund groups such as VanEck and 21Shares begin applying for spot Ethereum ETFs. BlackRock, the world's largest asset manager, will follow suit in November.
October 2023: Six Ethereum futures ETFs begin trading in the United States.
January 2024: The SEC approves a spot Bitcoin ETF, a landmark decision.
March 2024: Bitwise applies for a spot Ethereum ETF.
April 2024: Consensys sues the SEC, claiming the agency is trying to regulate ETH as a security.
May 22, 2024: Cryptocurrency gains bipartisan support as the House passes the FIT21 bill. The same day, five members of Congress (three Republicans and two Democrats) write to SEC Chairman Gary Gensler, urging the SEC to allow spot Ethereum ETFs.
May 23, 2024: The SEC approves the 19b-4 proposals submitted by the exchanges on which the planned ETH fund will trade. This comes after a change of position that may have been politically motivated.
July 17, 2024: The fund issuer files what appears to be a final registration statement, filling out details such as the fees for the ETH ETF. People familiar with the matter noted that they expect the SEC to deem the statements “effective” on June 22 (today).
July 18, 2024: Grayscale Investments unveils planned fees for its Ethereum Mini Trust of 0.15%, below the expected price point of its competitors.
July 19, 2024: Cboe noted in a filing that ETH ETFs from VanEck, Fidelity, Franklin Templeton, 21Shares, and Invesco/Galaxy will be listed on July 23, “pending regulatory effectiveness.”
July 23, 2024: U.S. spot Ethereum ETF officially approved for listing and trading.
As far as we know, the U.S. spot ETH ETF will not pledge its holdings, a feature that may deter some investors.
Nevertheless, industry watchers expect these funds to attract a significant amount of investor capital — a figure some put at around 15% to 30% of net inflows to U.S. spot bitcoin ETFs ($17 billion in more than six months).
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