US SEC Approves Two Spot Ethereum ETFs: Is a Major Altseason Loading?

A New Chapter for Ethereum Investment

The United States Securities and Exchange Commission (SEC) has officially approved the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF, marking a significant milestone for the cryptocurrency market. With trading expected to commence next week, this approval has the potential to reshape the landscape of Ethereum investments.

Spot Ethereum ETFs Get the Green Light

After months of anticipation, the SEC unanimously approved the rule change to list and trade shares of the two spot Ether ETFs. The approval, documented in the SEC's filing dated July 17, allows these ETFs to be listed on the NYSE Arca Inc. However, the agency noted that this approval is still subject to the final notice and comment of the S-1 filings.

Spot Ethereum ETFs Sponsor Fee Wars

Bloomberg’s ETF researcher James Seyffart highlighted the likelihood of multiple spot Ether ETFs beginning to trade next week. The Grayscale Ethereum Mini Trust (ETH) will start with a sponsor fee of 0.12 percent and a post-waiver fee of approximately 0.25 percent. In contrast, the existing Grayscale Ethereum Trust (ETHE) continues to operate with a fee of 2.50 percent. To kick-start the new ETF, 10 percent of the ETHE's total assets, valued at around $9.98 billion, will be spun off and deposited into ETH.

Grayscale expressed excitement over the SEC's approval, stating, "The Grayscale team continues to engage constructively with SEC staff as we seek full regulatory approval for US spot Ethereum ETPs."

Meanwhile, most spot Ether ETF issuers have set a zero starting fee with a post-waiver sponsor fee ranging between 0.19 percent and 0.25 percent. ProShares has yet to disclose details of its sponsor fee.

Impact on the Crypto Market

The introduction of spot Ether ETFs in the United States is poised to have a significant impact on the broader cryptocurrency market. Grayscale recently launched the Grayscale Decentralized AI Fund, which will invest in digital assets like TAO, NEAR, RNDR, FIL, and LPT, further diversifying its portfolio.

With substantial capital expected to flow into the Ethereum market in the coming months, there is a strong potential for a much-anticipated altseason. Additionally, applications for other spot crypto ETFs, including Solana (SOL), are expected to emerge in the upcoming quarters.

Shifting Dynamics in the Crypto Ecosystem

On-chain data reveals a decline of over 600,000 non-zero Bitcoin addresses in the past month, indicating a significant rotation of crypto assets towards altcoins. Technically, Bitcoin dominance has shown signs of an inevitable macro reversal, supported by a weekly bearish divergence on the Relative Strength Index (RSI).

Looking Ahead

The SEC's approval of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF marks a pivotal moment for Ethereum and the broader cryptocurrency market. As these ETFs begin trading, the influx of capital and increased accessibility for investors could usher in a new era of digital asset growth and innovation.

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