Ethereum ETFs will be launched tomorrow, July 23. How ready are you? These are the basic things you need know in order to be ready to start trading.
The market will soon see the introduction of spot Ether exchange-traded funds (ETFs) after encountering years of regulatory resistance and numerous revised registration filings.
This marks a significant milestone for cryptocurrency markets and presents a unique opportunity for both institutional and retail investors in the United States.
The upcoming listings will make publicly-traded Ethereum (ETH) ETFs available alongside well-established companies like Apple Inc (AAPL) and SPDR S&P Trust (SPY) on popular brokerage platforms. It’s an exciting development that’s worth paying attention to.
When will the Ethereum ETF be Launched?
On July 23, the Chicago Board Options Exchange (CBOE) plans to launch five ETFs for trading on its platform. These include the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.
Additionally, it is anticipated that four spot ETH ETFs will be traded on either Nasdaq or the New York Stock Exchange (NYSE) Arca. While official announcements from these exchanges are pending, it is widely expected that they will also be listed on July 23.
Which is the Best Ethereum ETF to Buy?
A number of Ether ETFs are scheduled to commence trading, each supported by a reputable manager and holding genuine spot ETH with a qualified custodian.
These funds rely on professional market-makers to generate and exchange shares and provide standard investor protections, such as insurance against brokerage failures and cybersecurity risks.
The management fees for most of the ETFs range from 0.15% to 0.25%, except for the Grayscale Ethereum Trust (ETHE), which carries a higher fee of 2.5% due to its unique trading structure since 2017.
In order to attract investors, many of the Ethereum ETFs are temporarily waiving or reducing their fees. Notably, the Grayscale Ethereum Trust and Invesco Galaxy Ethereum ETF (QETH) have higher fees.
The Grayscale Ethereum Mini Trust (ETH) is the most cost-effective choice, with management fees of just 0.15%. These fees are waived for the first six months after listing or until the fund reaches $2 billion in assets under management (AUM).
Another attractive option is Franklin Templeton’s Franklin Ethereum ETF (EZET), which has management fees of 0.19%, fully waived until January 2025 or until the fund surpasses $10 billion in AUM.
Can I stake my Ethereum ETF?
Staking is the depositing of a coin to a validator node. Staking is attractive and promises a higher return, however, it attracts network fees, other risks. There is a risk of slashing or forfeiting stakes collateral.
Staking of Ethereum ETF as at the time of writing is not certain but may be possible in the future.
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