VanEck and Franklin Templeton are the only companies that have announced their fees for spot Ethereum ETFs. Other companies are waiting to see what BlackRock decides before making their move.
On Tuesday, June 25, VanEck filed Form-8A for its spot Ethereum ETF and also revealed that it would waive the ETF fees until 2025 or until the assets reach $1.5 billion, whichever comes first. Analysts expect the Ethereum ETFs to launch on July 2, and VanEck is already increasing competition by making bold moves.
VanEck’s Strategic Approach to Crypto ETFs
In a recent email to ETF.com, Matthew Sigel, head of digital assets at VanEck, outlined the firm’s strategic approach to crypto ETFs. Sigel emphasized that VanEck “aims to be a leader on crypto ETF fees even if it means we lose money at the outset.”
Sigel further explained that the plan is “to make it up on volume; in this case, decentralized finance volume.” He mentioned that if the Ether ETFs manage to spark renewed interest in Ethereum, it would boost network activity, ultimately driving the price of Ethereum higher.
Additionally, Sigel stated that VanEck is also exploring investments in Ethereum-based DeFi projects such as Aave and Curve, highlighting the firm’s strong interest in the decentralized finance (DeFi) sector.
VanEck and Franklin Templeton Lead the Way on Ether ETF Fees
Currently, VanEck and Franklin Templeton are the only prospective issuers who have declared the fees for their Ether ETFs. Franklin Templeton previously announced it would charge a 0.19% fee for its spot Ethereum ETF.
Bloomberg Intelligence ETF analyst Eric Balchunas noted that issuers usually don’t disclose their fee structure until the very end of the launch period. He also mentioned that firms are waiting for BlackRock’s decision before making their moves. “What BlackRock is going to charge is probably the single most important missing variable outside of the exact launch date. Their fee is the sun that the rest will need to orbit around. Must be nice,” he said.
The removal of the Ethereum staking feature from the spot Ethereum ETFs will be a crucial factor in determining the ETF fees. With direct investments in Ether, investors can earn an additional 3% yield by staking their ETH. Therefore, ETF issuers will need to make extra efforts to attract investors to their Ethereum ETFs.
In a major update, SEC Chair Gary Gensler stated that the progress on spot Ethereum ETFs is very smooth at the moment.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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