Ethereum ETF issuers file final drafts in anticipation of potential Tuesday launch
- Ethereum ETF issuers have started filing their final S-1 registration statements.
- SEC Commissioner Hester Peirce believes the regulator could reconsider allowing staking in Ethereum ETFs.
- Ethereum whales could help ETH reach predicted all-time high of $5,627.
Ethereum (ETH) is down 1% on Wednesday as issuers began filing their final spot ETH ETF S-1 drafts with the Securities & Exchange Commission (SEC) in anticipation of a launch on July 23. Meanwhile, SEC commissioner Hester Peirce also said the regulator may reconsider its position on ETH staking within the ETFs.
Daily digest market movers: Issuers file final S-1s, ETH ETF staking still a possibility
Ethereum ETF issuers filed their final S-1 drafts with the SEC today after Bloomberg analyst Eric Balchunas reported earlier that the regulator asked them to submit the documents before the end of Wednesday. The final drafts of isseurs importantly revealed fees for their respective products:
- 21Shares Core Ethereum ETF (CETH) revealed a 0.21% fee.
- Grayscale Ethereum Trust maintained high fees coming in at 2.5%.
- Grayscale Ethereum Mini Trust sets fee at 0.25%.
- Bitwise Ethereum ETF revealed a fee of 0.20%.
- Invesco Galaxy Ethereum ETF disclosed a fee of 0.25%.
- Franklin Ethereum Trust revealed a fee of 0.19%
- iShares Ethereum Trust sets fee at 0.25%
- Fidelity Ethereum Fund disclosed a fee of 0.25%
Okay everyone. Here are the details for the #Ethereum ETFs that we expect to launch next week. We are only missing details for Proshares's ETF. 7 of the 10 funds have fee waivers. pic.twitter.com/5v3QnHOeub
— James Seyffart (@JSeyff) July 17, 2024
The SEC approved spot ETH ETF 19b-4 filings of eight issuers on May 23 but needs to greenlight their S-1 registration statements before the products can go live.
The SEC could give final approval to issuers S-1s and okay them for trading on Tuesday, noted Balchunas in an X post on Monday.
Meanwhile, SEC commissioner Hester Peirce said issuers allowing staking within Ethereum ETFs could be open for reconsideration in the future.
"I think certainly something like staking, or any feature of the product (...) those are always open for reconsideration as far as I'm concerned," said Peirce. Issuers had earlier removed staking from their applications after speculations that the SEC wasn't comfortable with the concept.
ETH technical analysis: Ethereum whales could lead rally
Ethereum is trading around $3,410 on Wednesday, down nearly 1% on the day. In the past 24 hours, ETH has sustained $32.28 million worth of liquidations, with long and short liquidations accounting for $17.22 million and $14.96 million, respectively.
ETH options open interest (OI) increased slightly after a 13% rise yesterday. Open interest is the total amount of unsettled contracts in a derivatives market. ETH's continued rising options OI, combined with its recent price increase, indicates potential for more upside in the market.
Also, IntoTheBlock noticed buying pressure from wallets holding at least 0.1% of ETH's supply after its price bounced from lows seen in the past week. This indicates whales are increasing their holdings in hopes of a rally if ETH ETF launches on Tuesday.
With ETH ETF issuers filing their final S-1 drafts, popular trader Peter Brandt's earlier prediction of ETH potentially reaching a new all-time high of $5,627 is gaining more strength.
ETH/USDT 1-day chart
Brandt predicted that if ETH can complete a move to the upside of a four-month rectangle — with upper and lower boundaries at $4,093 and $2,800 — it could set a new all-time high at $5,627.
On the downside, ETH could find support around $3,235, where investors purchased over 4.54 million ETH.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
