Ether ETF Fees Revealed! Issuers File “Final” S-1s with SEC

Wall Street giants are planning to launch Ethereum spot ETFs, potentially marking a new era in institutional crypto investment.

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  • Fees for Ethereum ETFs have been slashed to attract investors.
  • Ethereum ETF trading could start as soon as July 23.
  • Two new Ethereum ETFs have been approved by the SEC.

The countdown is on for Wall Street’s biggest players to dive headfirst into the cryptocurrency pool. BlackRock, Fidelity, and a slew of other financial titans are on the brink of launching spot Ethereum exchange-traded funds (ETFs), a move that could reshape the crypto landscape and potentially ignite a new era of institutional investment.

Industry insiders suggest these highly anticipated ETFs could begin trading as early as next week. This development marks a significant milestone for the cryptocurrency industry, potentially opening the door for wider institutional investment in Ethereum. To compete for investor dollars, these firms have unveiled their fee structures. 

Ethereum ETF Fees Revealed

The battle for the lowest fees in the cryptocurrency ETF space is heating up! While most issuers are neck-and-neck, offering fees between 0.20% and 0.25%, one firm stands out as the clear cost leader. Franklin Templeton swooped in with a remarkably low 0.19% fee, undercutting the competition by a hair. 

Sponsored

Grayscale took a different approach, charging a hefty 2.5% fee for its existing Ethereum Trust. However, their upcoming mini Ethereum ETF is rumored to be priced more competitively at 0.25%.

Ethereum ETF structures. Source: Bloomberg.
Ethereum ETF structures. Source: Bloomberg

Many of these firms have included provisions for fee waivers or discounts under certain conditions, such as reaching specific asset thresholds or during introductory periods. These are introductory promotions that temporarily reduce (or eliminate) the management fee. They incentivize early investment, but the fee will typically kick in later:

  • Bitwise and 21Shares offer a 6-month waiver for the first $500 million invested.
  • VanEck extends the waiver for 12 months or until $1.5 billion in assets are reached (whichever comes first).
  • Fidelity provides a fee-free period until the end of 2024.
  • Franklin Templeton offers the longest waiver, exempting fees until January 31st, 2025, but with a higher threshold of $10 billion in assets.

The SEC has already approved critical 19b-4 forms for eight physically settled Ethereum ETFs, a crucial step in the approval process. 

Coinbase is the preferred custodian for several major issuers, such as BlackRock, Franklin Templeton, Bitwise, and Invesco, which have opted to use Coinbase to hold the underlying Ethereum for their ETFs. On the other hand, VanEck and Fidelity have decided to go solo, each using their own custodial solutions, Gemini and Fidelity Digital Assets.

Bloomberg ETF analyst Eric Balchunas noted that the regulator has requested final S-1 forms from issuers with the goal of declaring them effective by July 22, potentially allowing trading to commence on July 23. 

SEC Greenlights New Ethereum ETFs

In a separate development, the SEC greenlit two spot Ethereum ETFs from Grayscale and ProShares for listing on the New York Stock Exchangeโ€™s Arca electronic platform. However, these products still await final approval on their S-1 filings before they can begin trading. 

Grayscale has revealed plans to distribute shares of its new mini Ethereum ETF to holders of its existing Ethereum Trust, a move that could reshape the Ethereum investment landscape. The potential launch of multiple spot Ethereum ETFs is seen as a watershed moment for the cryptocurrency industry.

On the Flipside

  • Even with competitive rates, fees can eat into returns, especially for long-term investors.
  • Exchange-traded funds don’t eliminate the underlying security risks associated with cryptocurrency.
  • Although some ETFs are greenlit, the SEC’s final approval for all filings remains pending and could be subject to change.

Why This Matters

The sudden cancellation of a potential SEC meeting with Ripple has reignited uncertainty surrounding XRP’s regulatory status. While the broader market remains stable, XRP holders face a renewed wait for clarity, potentially impacting wider adoption and the token’s price in the short term.

To learn more about the anticipated launch of ether ETFs and their potential impact on the price of ether, read here:
ETFs Will Send Ether to All-Time Highs Above $5,000: Bitwise CIO

For more details on the launch of spot ether ETFs and what we know so far, read here to find out more:
Ether ETF Release Primed for July 23: Here’s What We Know

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a reporter for DailyCoin covering all Ripple (XRP) developments and market analysis. Kyle's has major XRP holdings, moderate in Solana and Ethereum, and minor holdings across 20+ other cryptocurrencies.

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