Asset management firm BlackRock has announced a fee of 0.25% for its spot Ethereum exchange-traded fund (ETF) ahead of its potential launch next week.
BlackRock’s S-1 registration statement, filed on July 17, outlines that the fee will accrue daily at an annualized rate of 0.25% of the fund’s net asset value.
This fee is payable at least every three months in US dollars, in-kind, or a combination of both.
The firm also mentioned it might waive all or part of the fee for certain periods and plans to do so upon the fund’s launch.
BlackRock’s spot Ether ETF will initially trade at a 0.12% fee until either 12 months pass or the fund accumulates $2.5 billion in net assets, whichever occurs first.
This approach mirrors the fee structure of the iShares Bitcoin Trust.
Other firms have also detailed their proposed fees and waiver periods in their S-1 registration forms. Franklin Templeton’s spot Ether ETF will charge the lowest fee at 0.19%.
The Bitwise Ethereum ETF and VanEck Ethereum ETFs are set at 0.20%, while the 21Shares Core Ethereum ETF’s fee is 0.21%.
Both Fidelity and Invesco Galaxy will offer a 0.25% fee, similar to BlackRock.
However, several firms, including Bitwise, Fidelity, Franklin Templeton, 21Shares, and VanEck, have proposed waiving their fees initially.
VanEck will waive its fee for the first 12 months or until the fund reaches $1.5 billion in net assets. Bitwise will waive its fee for the first six months or $0.5 billion in net assets.
Franklin Templeton has set a waiver until January 31, 2025, or $10 billion in net assets.
Fidelity’s fees will be waived until January 1, 2025, after which they will increase to 0.25%.
Meanwhile, Grayscale 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 use 10% of its spot Ethereum ETF to establish the Ethereum Mini Trust, providing $1 billion in seed funding.
Reports indicate that BlackRock, Franklin Templeton, and VanEck have already received preliminary approval from the United States securities regulator.
Bloomberg ETF analyst Eric Balchunas expects the S-1s to be signed off next Monday, allowing the spot Ether ETFs to start trading on Tuesday, July 23.
Bitwise’s chief investment officer, Matt Hougan, speculated that the spot Ether ETFs could attract up to $15 billion in inflows within the first 18 months of trading, similar to the spot Bitcoin ETFs’ performance since their launch six months ago.
If approved, the spot Ether ETFs will be listed on the Nasdaq, New York Stock Exchange, and the Chicago Board Options Exchange.
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