How is the Crypto Market Preparing for the Spot ETH ETF Launch?

• The Spot ETH ETFs are expected to begin trading on Tuesday. 
• SEC Commissioner, Hester Peirce stated that ETH ETF staking might be a possibility.

The most anticipated US Spot Ethereum ETFs are expected to make their market debut on July 23. In preparation for the launch, issuers have filed their S-1 filings and made announcements on fees, custodians, and other facets of their respective products. The market has also seen several updates from the Securities and Exchange Commission (SEC). 

Notably, leading issuers including Grayscale, VanEck, 21Shares, and others announced their initial fees, waiver period length, and respective custodians. Moreover, Grayscale on Wednesday received approval from the SEC for its Grayscale Ethereum Mini Trust (ETH). 

Secondly, in terms of initial fees, five issuers – VanEck, Bitwise, Franklin, 21Shares, and Fidelity have announced zero initial fees. Grayscale has announced the highest initial fees for its spot ETH ETF, 2.50% while for its Mini fund, the fee is 0.12% similar to iShares. ProShares is the only ETF that has not made any updates about its ETF product. 

Moreover, most of the nine issuers have stated their custodian as Coinbase. Two individual ETFs have stated Gemini and Fidelity as custodians. ProShares is the only ETF that has not made any updates about its ETF product.

Previously, in the spot Bitcoin ETFs issuers depicted a ‘fee war’ reducing the fees on their ETFs to attract investors. Additionally, Grayscale’s high fee has caused speculations in the market. One market analyst Scott Johnsson in an X post expressed his criticism of the issuer’s high fee. 

What to Expect for ETH Price Post Spot ETF Launch? 

The Ethereum price showed a 2.45% price decline amid issuers’ S-1 filings. The spot Ethereum ETFs are expected to be approved by Monday and start trading on Tuesday. With the launch market analysts expect a bullish price rally in the leading altcoin. 

In case of a bull run, Ethereum price is expected to hit new highs surpassing the $4K level according to market experts. Notably, the token’s open interest increased by 13% in the last 24 hours. At the time of writing, ETH was trading at $3,423 according to CMC data. 

On the other hand, SEC commissioner Hester Peirce, in a recent Coinage interview, indicated that the Commission is reconsidering the allowance of staking for the ETF. Initially, during the May approval, the SEC didn’t allow for staking the spot ETH ETFs but this might be subject to change. 

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