BlackRock has announced that its spot Ethereum exchange-traded fund (ETF) will carry a 0.25% fee, with the launch potentially happening next week. According to BlackRock’s S-1 registration statement filed on July 17, the fee will be accrued daily at an annualized rate of 0.25% of the fund’s net asset value, payable at least every three months. However, the firm plans to initially offer the ETF at a reduced fee of 0.12% for the first 12 months or until it gathers $2.5 billion in net assets, whichever comes first.
Several other firms have also disclosed their proposed fees and waiver periods amidst a rush of amended S-1 registration forms. Franklin Templeton plans to charge the lowest fee at 0.19% for its spot Ether ETF, while Bitwise and VanEck have set theirs at 0.20%. The 21Shares Core Ethereum ETF will have a fee of 0.21%, and Fidelity and Invesco Galaxy will match BlackRock’s 0.25% fee.
Notably, five issuers, including Bitwise, Fidelity, Franklin Templeton, 21Shares, and VanEck, have proposed fee waivers for the launch period. VanEck’s fee waiver will last for the first 12 months or until $1.5 billion in net assets is reached. Bitwise will waive its fee for the first six months or $0.5 billion in net assets, and Franklin Templeton has set a waiver period until January 31, 2025, or a $10 billion threshold. Fidelity will maintain its fee waiver until January 1, 2025, after which the fee will increase to 0.25%.
Grayscale, on the other hand, will maintain a fee of 2.5% for its spot Ether ETF but will offer a more competitive fee of 0.25% for its newly approved Grayscale Ethereum Mini Trust. Grayscale plans to seed the Mini Trust with 10% of its spot Ethereum ETF, amounting to $1 billion.
Reports indicate that BlackRock, Franklin Templeton, and VanEck have already received preliminary approval from the U.S. securities regulator. Bloomberg ETF analyst Eric Balchunas predicts that the S-1 filings will be signed off next Monday after trading hours, allowing the spot Ether ETFs to begin trading on Tuesday, July 23.
Bitwise’s chief investment officer, Matt Hougan, forecasts that the spot Ether ETFs could attract up to $15 billion in inflows within the first 18 months of trading, matching the performance of spot Bitcoin ETFs launched six months ago. If approved, these ETFs will be listed on major exchanges like the Nasdaq, New York Stock Exchange, and the Chicago Board Options Exchange.
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