BlackRock has set the stage for the potential launch of its spot Ethereum exchange-traded fund (ETF) next week, with a proposed fee of 0.25%.
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 and payable at least quarterly in US dollars, in-kind, or both.
Initially, BlackRock plans to waive this fee upon launch, similar to the approach taken with its iShares Bitcoin Trust, which started trading at a 0.12% fee for the first year or until reaching $2.5 billion in net assets.
Okay everyone. Here are the details for the #Ethereum ETFs that we expect to launch next week. We are only missing details for Proshares’s ETF. 7 of the 10 funds have fee waivers. pic.twitter.com/5v3QnHOeub
— James Seyffart (@JSeyff) July 17, 2024
Franklin Templeton Sets Lowest Fee for Spot ETH ETF
Other firms have also indicated their proposed fees and waiver periods amidst a surge of amended S-1 registration forms. Franklin Templeton plans to charge the lowest fee at 0.19%, while Bitwise and VanEck ETFs are set 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.
Five issuers, including Bitwise, Fidelity, Franklin Templeton, 21Shares, and VanEck, have proposed to waive their fees at launch. VanEck’s fee waiver will last for the first 12 months or until the fund reaches $1.5 billion in net assets.
Bitwise will waive its fee for six months or until it hits $0.5 billion in assets, while Franklin Templeton has set a deadline of January 31, 2025, or a $10 billion threshold. Fidelity’s waiver will extend until January 1, 2025, with fees increasing to 0.25% afterward.
Meanwhile, Grayscale has kept the fee for its spot Ethereum ETF at 2.5%, though its newly approved Ethereum Mini Trust will offer a competitive 0.25% fee. This trust will seed 10% of its funds from Grayscale’s spot Ethereum ETF, providing $1 billion in initial funding.
BlackRock, Templeton, VanEck Reportedly Received Preliminary Approval
Reports indicate that BlackRock, Franklin Templeton, and VanEck have already received preliminary approval from the U.S. securities regulator.
Bloomberg ETF analyst Eric Balchunas anticipates the S-1s will be approved next Monday after trading hours, allowing spot Ether ETFs to start trading on Tuesday, July 23.
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