SEC approves Ethereum ETF to start trading on major exchanges. ETF prices may not rise but plummet in the short term?

The U.S. Securities and Exchange Commission (SEC) has approved several spot Ethereum exchange-traded funds (ETFs), which will begin trading on July 23rd.

The approval follows weeks of registration statement revisions and includes issuers like 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy.

Issuers and Listings

The approved ETFs will be listed on major stock exchanges such as Nasdaq, the New York Stock Exchange (NYSE), and the Chicago Board Options Exchange (CBOE).

BlackRock’s iShares Ethereum Trust will be on Nasdaq, while the Grayscale Ethereum Trust will be listed on the NYSE.

Fee Structures

Most of the new spot Ether ETFs will feature management fees ranging from 0.15% to 0.25%. Bitwise offers a competitive 0.20% fee with an initial discount for the first $500 million in assets. In contrast, Grayscale’s Ethereum Trust maintains a higher fee of 2.5%, while BlackRock charges a 0.25% fee.

Promotional Waivers

Several issuers, including Fidelity, 21Shares, Franklin Templeton, and VanEck, have announced fee waivers for a certain period or until their products reach specific net asset thresholds. The Grayscale Ethereum Mini Trust will waive fees for the first six months or until it reaches $2 billion in assets.

ETF price may plummet

While the Spot Ethereum ETFs going live for trading have been well-received by the crypto community, crypto expert Benjamin Cohen has pointed out another alarming development that could sendthe ETH pricecrashing. This time, it is the ETH supply increasing rapidly.

In the X (formerly Twitter)post, Cohen points out that the ETH supply had turned inflationary once again.

For reference, theEthereum Mergepreviously made the ETH supply deflationary, with burns from transactions sending hundreds of thousands of ETH to the dead wallet.

However, recently, with activity falling to new lows on theEthereum network, the supply has turned inflationary as there isn’t enough transaction fees being burned to outpace new supply.

More specifically, the crypto expert revealed that the supply had gone up by 60,000 ETH in just one month.

Now, if the supply continues to increase at this rate, Cohen explains that it will take only until December for the supply to get back to where it was before the Merge was completed.

Unless there is a reversal and the supply turns deflationary once again, this new supply could undermine the inflows from Spot Ethereum ETFs and pushthe ETH pricedown instead.