BlackRock Reveals Competitive 0.25% Fee for Spot Ethereum ETFs Following Issuer Filing Update
Several spot Ethereum (ETH) ETF applicants filed S-1 amendments with the SEC on July 17 detailing sponsorship fee and exemption details as they prepare for trading launches next week.
Almost all publishers have detailed their fee and sponsor fee waiver terms in their latest submissions.
BlackRock said it would set a 0.25% sponsorship fee and charge only a 0.12% fee for the first 12 months or up to $2.5 billion. Fidelity, meanwhile, said it would set the same 0.25% fee and waive the entire sponsorship fee until December 31, with no other conditions.
21Shares and Bitwise have added fees of 0.21% and 0.2% respectively, and are waiving them entirely for the first six months or up to $500 million.
Grayscale has added a 2.5% fee to its main spot Ethereum ETFs that have been converted from the Grayscale Ethereum Trust. Added a 0.25% fee and 12-month waiver to mini ETH trusts valid for up to $2 billion.
Franklin Templeton has reaffirmed its 0.19% fee and fee waiver for the first $10 billion of assets. The firm added that the waiver will last until January 31, 2025.
Van Eck Similarly, it reaffirmed the 0.20% fee and said the fee waiver period will last for 12 months or the first $1.5 billion after launch. Invesco Galaxy also reaffirmed its 0.25% fee and 0.25% starting fee.
ProShares did not submit fee or exemption data.
Pending release
Bloomberg ETF Analyst Eric Balchunas Commented The discussion of fees raises questions about whether each fund can generate significant inflows from the funds released from Grayscale’s Conversion ETF.
Balchuans said:
“Will these newbies have enough power to offset outflows like BTC? Anyway, the short story is that (Grayscale’s) 2.5% fee makes the path to decent net outflows a bit more difficult. We’ll have to wait and see.”
The latest addition is one of the final steps towards approval.
The SEC approved a proposed rule change for spot ETH ETFs on May 23. The change would allow exchanges to list and trade the funds, but would not give asset managers the final approval they need to issue them.
The fund is expected to receive final approval next week and begin trading on July 23, according to industry sources.
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Mike Dalton
Mike studied Library and Information Science before switching to cryptography in 2018. He currently resides on the West Coast of Canada.
Assad Jafri
AJ has been a passionate journalist for over 10 years, honing his skills globally since the Arab Spring in Yemen in 2011. He specializes in financial journalism and currently focuses on cryptocurrency reporting.
