CDS Crypto News Crypto News Today- A ‘fee war’ in the Spot Ethereum ETF market ignites with Franklin Templeton’s fee announcement
Crypto News

Crypto News Today- A ‘fee war’ in the Spot Ethereum ETF market ignites with Franklin Templeton’s fee announcement

37
Crypto News Today- A 'fee war' in the Spot Ethereum ETF market ignites with Franklin Templeton's fee announcement

Franklin Templeton’s fee announcement triggers a ‘fee war’ in Spot Ethereum ETFs

Crypto News– American multinational investment firm Franklin Templeton has filed an amended S-1 application for its proposed spot Ether exchange-traded fund (ETF) product and is the first among the applicants to disclose fees to investors.

In a filing with the United States Securities and Exchange Commission on May 31, Franklin Templeton stated, The fees of the Sponsor accrues daily at an annualized rate equal to 0.19% of the net asset value of the Fund.

Bloomberg ETF analyst Eric Balchunas noted in an X post on the same day that the opening shot in the ETH ETF fee war has been fired from Franklin. He dismissed speculation that the fee might be temporary, emphasizing that it “looks permanent” and matches the fee for Franklin’s spot Bitcoin ETF product.

Sponsor fees, which compensate the fund manager for administration expenses, are a competitive aspect of ETF products, as investors typically prefer funds with the lowest fees.

While VanEck, Invesco, and Galaxy also submitted amended S-1 applications on the same day, none had disclosed their sponsor fees.

Ether ETF competitors have yet to reveal their sponsor fees

Just before the spot Bitcoin ETFs launched in January, Balchunas referred to the frequent S-1 filing amendments for fee adjustments as the fee wars.

Crypto News Today- A 'fee war' in the Spot Ethereum ETF market ignites with Franklin Templeton's fee announcement
Crypto News Today- A 'fee war' in the Spot Ethereum ETF market ignites with Franklin Templeton's fee announcement 1

Several issuers even went as far as waiving fees entirely to remain competitive. For instance, Bitwise waived all fees on its spot Bitcoin ETF for the first six months of trading and for the first $1 billion in assets.

Grayscale Investments and BlackRock submitted their amendments on May 30 and May 29, respectively. At the time, Balchunas remarked that it was a good sign and predicted that the rest of the applicants would probably follow suit soon.

He mentioned that there would likely be another round of amendments to fine-tune SEC comments but suggested that the launch of spot Ether ETFs by the end of June is a legit possibility.

FAQs

What fees did Franklin Templeton disclose for its Spot Ethereum ETF?

Franklin Templeton disclosed that the sponsor fees for its Spot Ethereum ETF accrue daily at an annualized rate equal to 0.19% of the fund’s net asset value.

Why are sponsor fees important for investors in ETFs?

Sponsor fees are crucial for investors because they represent the cost of managing the ETF. Lower fees can enhance overall returns for investors, making ETFs with lower fees more attractive.

For the latest in crypto updates, keep tabs on Crypto Data Space.

Crypto News Today- A 'fee war' in the Spot Ethereum ETF market ignites with Franklin Templeton's fee announcement

Leave a comment

Leave a Reply

Related Articles

Crypto News- Ether and Meme Coins Lead the Recovery as Bitcoin Stays Muted

Here's a look at the latest price movements in the crypto markets...

Bitcoin Whales Liquidate $1B in BTC Over the Past Fortnight: CryptoQuant

Selling during this period aligns with net outflows observed from U.S.-listed bitcoin...

Crypto News – Stablecoin Transfer Volume Skyrockets: Surges 16-Fold Over Last 4 Years

The rise in stablecoin usage suggests increasing cryptocurrency adoption and a maturing...

Meme Coins and Macro: Peak Stress Among U.S. Credit Card Holders Since 2012

The increase in credit card loans overdue for more than 90 days,...