Crypto News Today- BlackRock sets a 0.25% fee for its spot Ether ETF amid a surge in S-1 filings

Crypto News Today- Amid the rush of S-1 filings, BlackRock establishes a 0.25% fee for its spot Ether ETF

Crypto News Today- Asset management firm BlackRock has set the fee for its spot Ethereum exchange-traded fund (ETF) at 0.25%, with a potential launch expected next week.

In its S-1 registration statement filed on July 17, BlackRock explains that the fee will be accrued daily at an annualized rate of 0.25% of the fund’s net asset value. This fee will be payable at least every three months in US dollars, in-kind, or a combination of both.

The statement also mentions that BlackRock could waive all or a portion of the fee for certain periods, and they plan to do so upon launch.

Similar to the iShares Bitcoin Trust, BlackRock’s spot Ether ETF will start trading at a 0.12% fee until 12 months pass or it amasses $2.5 billion in net assets, whichever comes first.

Meanwhile, other firms have also indicated their proposed fees and waiver periods amidst a wave of amended S-1 registration forms.

The Franklin Templeton-issued spot Ether ETF will charge the lowest fee at 0.19%, while the Bitwise Ethereum ETF and VanEck Ethereum ETFs are set at 0.20%.

The 21Shares Core Ethereum ETF’s fee is set at 0.21%, while Fidelity and Invesco Galaxy will offer the same 0.25% fee as BlackRock.

Ethereum ETF Fee Waivers and Market Predictions

However, Bitwise, Fidelity, Franklin Templeton, 21Shares, and VanEck have proposed to completely slash their fees initially.

VanEck’s fee will be waived for the first 12 months or until it amasses $1.5 billion in net assets, whichever comes first. Bitwise will waive its fee for the first six months or until it reaches $0.5 billion in net assets, while Franklin has set a threshold of January 31, 2025, or $10 billion.

Fidelity will waive fees until January 1, 2025, after which the fees will increase to 0.25%.

Meanwhile, Grayscale is maintaining its spot Ether exchange-traded fund fee at 2.5%. However, the newly approved Grayscale Ethereum Mini Trust will offer a much more competitive fee of 0.25%.

Grayscale stated that 10% of its spot Ethereum ETF will establish its Ethereum Mini Trust, providing $1 billion in seed funding. Reports indicate that at least three ETF issuers — 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 after trading hours, allowing the spot Ether ETFs to officially 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, roughly the same amount that spot Bitcoin ETFs have garnered since their launch six months ago.

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