What are the Ethereum ETFs? Inventory of six Ethereum spot ETFs and an overview of their approval progress

After the Bitcoin spot ETF started this round of rising prices in the cryptocurrency market, the news that Black Rock tried to apply for an Ethereum spot ETF further promoted the market of ETH. In a short period of time, the price of Ethereum exceeded $2,000 and once exceeded $2,100, setting a record for the bear market in the past year. This news has made the Ethereum market hot again.

Judging from the current trend, several large fluctuations in the market were largely catalyzed by news related to ETFs. Therefore, the application and approval progress of ETFs has become the focus of great attention. In the middle of this year, the chain circle has compiled a detailed application and review schedule for special spot ETFs. The news about Ethereum’s spot ETFs this time is not to be missed.

The editor will introduce to you the background of the investment institution that applies for ETH spot ETF, the scale of assets under management, the special features of the ETF, and the approval schedule and deadline.

The difference between Ethereum futures ETF and Ethereum spot ETF

The biggest difference between Ethereum spot ETF and Ethereum futures ETF is the investment target Contents. The Ethereum spot ETF invests in the actual underlying asset, which is the Ethereum token itself. This means that the ETF holds physical ETH assets and investment performance is directly related to the price of Ethereum. The Ethereum Futures ETF invests in Ethereum futures contracts, which predict the price of ETH at a certain time in the future. This ETF typically holds ETH futures contracts, whose value fluctuates with changes in Ethereum futures prices. Therefore, the investment strategies and risk characteristics of the two ETFs differ.

##Investment TargetActual ETHETH Futures ContractRisk and Volatility is directly related to the price of ETHSubject to ETH Futures Market impact, volatility may be higherTrading characteristicsSimilar to stocks, convenient tradingTrading and delivery are subject to futures market constraintsCost and LiquidityUsually lower overhead, higher liquidityOverhead fees may vary, lower liquidity

Ethereum spot ETF application process

The ETF application process for Ethereum is roughly the same as that for Bitcoin spot ETF. Once an institution submits a new ETF application, the SEC will register the application in the Federal Register. From the day of registration, the countdown period of 240 days begins. During this period, the SEC will review the application, including evaluating factors such as asset liquidity, market demand, and investor protection. Ultimately, the SEC will make a decision on whether to approve the application based on its review results. If the application is approved, the ETF will be listed on the exchange and available for trading by investors. This process usually requires some time and patience.

The approval process is divided into four stages, with the periods of each stage being 45 days, 45 days, 90 days and 60 days respectively. At the end of each stage, the SEC must respond: allow the product to launch, deny the product to launch, or request more review time. The adjudication of the entire case must be completed within 240 days at the latest, that is, the result will be available within 240 days from the date of application for registration.

Starting in 2021, VanEck and Kryptoin Investment Advisors are trying to apply for an Ethereum spot ETF. There are now some well-known companies joining the space, including BlackRock, ARK Invest, and Invesco, as well as Hashdex’s proposed hybrid Ethereum futures spot contract ETF, and Grayscale ) attempts to convert futures trusts into spot ETFs. These applications will be approved or rejected one by one in the order they are submitted.

Ethereum Spot ETF Application & Review Timetable

Comparison Items	ETH Spot ETF	ETH Futures ETF

Applicant Institution	AUM (USD)	ETF Name	Exchange to be listed	Latest status	Phase 1 deadline	Phase 2 deadline	Phase 3 deadline	Final Deadline
Grayscale	50 Billion	Grayscale Ethereum Trust	NYSE Arca	The review has not started yet	Not yet announced	Not yet announced	Not yet announced	Not yet announced
ARK Invest & 21Shares	15.9 billion & 1.2 billion	ARK 21SHARES ETHEREUM ETF	Cboe BZX	Not yet started review	Not yet announced	Not yet announced	Not yet announced	Not yet announced
Black Rock	8.6 Mega	iShares Ethereum Trust	Nasdaq	The review has not yet started	Not yet announced	Not yet announced	Not yet announced	Not yet announced
VanEck	764 billion	VanEck Ethereum Trust	Cboe BZX	has not yet started review	Not yet announced	Not yet announced	Not yet announced	Not yet announced
Invesco & Galaxy	1.5 trillion & 1.9 billion	Invesco Galaxy Ethereum ETF	Cboe BZX	Not yet reviewed	Not yet announced	Not yet Announced	Not yet announced	Not yet announced
Hashdex	440 million	Hashdex Nasdaq Ethereum ETF	Nasdaq	The review has not yet started	Not yet announced	Not yet announced	Not yet announced	Not yet announced

It should be noted that although the five Ethereum ETFs have not yet started the first phase of review, Bloomberg analyst James Seyffart predicts that the final deadline for the Ethereum spot ETF will be around May 23, 2024. We will update the table with the latest developments.

Investment institutions apply for Ethereum spot ETF inventory

ARK Invest & 21Shares: ARK 21SHARES ETHEREUM ETF

▍Submission date: September 6, 2023

ARK Invest, founded by Cathie Wood in 2014, is a well-known investment management company focusing on emerging technology and innovation fields. Cathie Wood is an investor with rich investment experience and forward-looking insights. She has been focusing on high-growth and highly innovative industries and technologies for many years. Her investment content covers artificial intelligence, blockchain, gene therapy, self-driving technology, etc. Committed to discovering and investing in companies and technologies with disruptive potential, it is one of the important participants in emerging industry investments.

In the past few years, ARK Invest has been loved by investors for its precise layout of emerging technology and innovation fields. Its funds include ARK Innovation ETF (ARKK), ARK Genomic Revolution ETF (ARKG) ), holding stocks of emerging companies including Tesla, Square, Teladoc, CRISPR Therapeutics, etc., bringing impressive returns to ARK Invest.

ARK Invest The Ethereum spot ETF proposed this time will mainly hold Ethereum tokens, but the review has not yet started. After the review is scheduled, the deadlines for each stage will be updated.

Black Rock: iShares Ethereum Trust

▍Submission Date: November 15, 2023

Black Rock was founded in 1988 by veteran financier Larry Fink and several others Founded by partners, it is one of the largest asset management companies in the world. Black Rock is well-known in the investment community for its professional asset management and diversified investment portfolios covering a variety of assets, including stocks, bonds, currencies, real estate and alternative investments, and not only provides a variety of investment products and solutions , also provides risk management, investment consulting and technology platform services to institutional investors, corporate and individual investors.

Black Rock’s most well-known feature is its huge asset management scale, totaling more than 8.6 trillion U.S. dollars, spanning various assets and financial derivatives around the world, which has also attracted additional market attention to their trends and investment intentions. , the Bitcoin spot ETF applied for in the same year can be said to be the beginning of the recent increase in the cryptocurrency market, and has also greatly increased the interest of external investors in the cryptocurrency market.

The Ethereum spot ETF proposed by Black Rock this time will mainly hold Ethereum tokens, but the review has not yet started. After the review is scheduled, the deadlines for each stage will be updated.

VanEck: VanEck Ethereum Trust

▍Submission date: July 5, 2021

VanEck was established in 1955 by John C. van Eck with a financial investment background. An asset management company known for its investment performance across different asset classes, its expertise in specific industries and regions has helped investors achieve impressive returns, particularly in metals and mineral resources, emerging markets, fixed income and renewables. Alternative investments and other areas.

Over the past few decades, VanEck's investment strategy has focused on providing low-risk, stable returns while emphasizing diversification and is committed to providing investors with options for different risk appetites and investment objectives. It is also one of the early institutions to incorporate cryptocurrencies into its investment system. For example, VanEck Ethereum ETN is one of VanEck's ETFs that tracks the price of Ethereum.

VanEck can also be said to be the earliest institution to apply for an Ethereum spot ETF. The Ethereum spot ETF proposed this time will mainly hold Ethereum tokens, but the review has not yet started and will be reviewed later. After the schedule is completed, the deadlines for each stage will be updated.

Invesco & Galaxy: Invesco Galaxy Ethereum ETF

▍Submission date: September 29, 2023

Invesco is a long-established global asset management company founded by One of the people is C. Robert Henrikson and other partners founded in 1935, headquartered in Atlanta, Georgia, USA. Invesco is known for its broad portfolio and global investment perspective. They cover a variety of investing areas, including stocks, bonds, alternative investments, and asset allocation.

Invesco's diversified investment strategy aims to provide investors with various risk and return allocation options, and continues to integrate innovative investment strategies with sound risk management. Invesco has done quite well on the performance of some of its investment products over the past few years. ETFs such as the PowerShares series, as well as actively managed funds in different asset classes, have achieved certain investment returns for investors.

The Ethereum spot ETF proposed by Invesco this time will mainly hold Ethereum tokens, but the review has not yet started. After the review is scheduled, the deadlines for each stage will be updated.

Hashdex: Hashdex Nasdaq Ethereum ETF

▍Submission date: September 13, 2023

Compared with other experienced investment institutions, Hashdex focuses on cryptocurrency It is a cryptocurrency asset management company headquartered in Brazil founded in 2018 by Marcelo Sampaio and Bruno Caratori, who have financial and technology backgrounds. It is one of the pioneers of investing in cryptocurrency in Latin America.

Over the past few years, Hashdex has developed a series of cryptocurrency index funds that use various types of cryptocurrencies as underlying assets, or track specific cryptocurrency indexes, allowing investors to do so without directly purchasing or managing a single Cryptocurrency way to invest in this emerging market.

Hashdex The Ethereum Nazdaq ETF proposed this time is not an ETF that simply holds spot, but a new type of product that integrates Ethereum futures contracts, Ethereum spot and cash. Related Analysts believe that this type of non-pure spot product has the opportunity to achieve new breakthroughs for ETFs containing spot products, and may be more likely to be approved than other applicants. However, the review has not yet started. Once the review is scheduled, the deadlines for each stage will be updated.

Gray Scale: Grayscale Ethereum Trust

▍Submission Date: October 3, 2023

Grayscale Investments is a cryptocurrency investment established in 2013 by founder Barry Silbert Company, focused on providing cryptocurrency investment products. Barry Silbert is also the founder of Digital Currency Group (DCG), the parent company of Grayscale Investments, focusing on cryptocurrency and blockchain technology investments. Years of promoting the technological development of blockchain and creating new types of cryptocurrency financial products have made Barry Silbert a giant with dual influence in the fields of cryptocurrency and financial technology.

Grayscale is famous for its cryptocurrency investment products. In the past few years, it has created a series of cryptocurrency trust funds, such as Bitcoin Trust, Ethereum Trust, etc. These funds allow investors to participate in Bitcoin through the traditional securities market. Investment in mainstream cryptocurrencies such as Coin and Ethereum provides investors with a relatively safe and convenient way to invest in the cryptocurrency market.

Grayscale Ethereum Trust, which wants to apply to be converted into an ETF this time, is currently the second largest ETH entity in the world, according to Arkham's on-chain tracking, with approximately US$5 billion in ETH. Previously, Grayscale had won the first stage of the lawsuit with the U.S. Securities and Exchange Commission in court over the conversion of the Bitcoin Trust Fund (GBTC) to a spot ETF, which also made some investors concerned about the conversion to an Ethereum spot ETF. Be optimistic. The conversion application has not yet been reviewed. Once it is scheduled for review, the deadlines for each stage will be updated.

Conclusion:

Judging from the list of applications that have been submitted one after another, these institutions that are trying to launch Ethereum spot ETFs have all previously applied for Bitcoin spot ETFs, or have tried to convert their original ones. Trust and futures products have been converted into spot products. From this series of actions, it can be seen that the traditional financial industry's optimism for the cryptocurrency market is not limited to Bitcoin, but also includes the second largest Ethereum.

If the Bitcoin spot ETF passes smoothly, then there seems to be no reason not to pass the Ethereum spot ETF. The intention of major institutions to seize the opportunity is quite obvious. Considering that these increases have fluctuated with the progress of ETFs, next, please be sure to follow the chain circle to pay attention to the latest developments of ETFs!

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