Spot Ethereum ETF Issuers Declared Fee Structure

SEC Deadline Intensifies Competition Among Ethereum ETF Issuers

By July 18, all nine issuers including Grayscale Ethereum Mini Trust, Franklin, VanEck, Bitwise, 21Shares, Fidelity, iShares, Invesco, and GrayScale Ethereum Trust submitted the S-1 form, as the Securities and Exchange Commission (SEC) requested

The SEC ordered all the issuers to provide all the details including fee and exchange details in the final submission. By the end of July 18, all spot Ethereum (ETH) ETF providers submitted their fee, waiver fee, and exchange details.

At the time of writing, ETH was trading at $3,418.77, after recording a surge of 0.13% in a day with a market cap of $411,019,264,385 and $14,671,785,825 in 24-hour volume.

Submission of the forms on a set deadline boosted the chance of ETF approval however, the submission heated competition among all the applicants.

Fee Structure of The Spot Ethereum ETFs Applicants 

James Seyffart, the ETF analyst at Bloomberg shared the fee details of all the Ethereum ETF providers over X (formerly Twitter).    

Source: X      

BlackRock has revised its S-1 registration statement, announcing a 0.25% management fee for its spot Ethereum ETF, ETHA. This fee will be calculated daily at an annualized rate of 0.25% of the fund’s net asset value and payable quarterly in US dollars, in-kind, or a combination of both.

Franklin Templeton will have the lowest fee at 0.19%, while Bitwise and VanEck decided to charge a fee of 0.20%. The 21Shares Core Ethereum ETF will take a fee of 0.21%, and both Fidelity and Invesco Galaxy will match the fee of BlackRock which is 0.25%.

Interestingly, five issuers, including Bitwise, Fidelity, Franklin Templeton, 21Shares, and VanEck, plan to waive their fees initially, each with specific conditions. For instance, VanEck will waive its fee for the first 12 months or until the ETF reaches $1.5 billion in net assets.

Furthermore, Grayscale has unveiled the launching of the Grayscale Ethereum Mini Trust, which will charge a fee of 0.25%, similar to BlackRock’s ETF. Grayscale schedules to use 10% of the assets from its spot Ethereum ETF to fund the Ethereum Mini Trust, supplying $1 billion in seed funding.

Conclusion

By July 18, all spot Ethereum ETF issuers, including Grayscale, Franklin Templeton, and VanEck submitted their updated S-1 form. This submission process has intensified competition among the applicants, each detailing their fee structures and conditions. Notably, Franklin Templeton offers the lowest fee at 0.19%, while others like BlackRock and Grayscale set their fees at 0.25%. The timely submissions have increased the likelihood of ETF approvals, potentially impacting the Ethereum market positively.

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