Ethereum ETF Providers Revise Fee and Investment Details in Latest Filings

Asset Managers Update Ethereum ETF Proposals

Several leading asset managers, including VanEck, BlackRock, Grayscale, Invesco Galaxy Digital, and Fidelity, have submitted updated proposals for Ethereum exchange-traded funds (ETFs) to the United States Securities and Exchange Commission (SEC). These revised filings include crucial fee structures and investment details, according to Bloomberg analyst Eric Balchunas.

Fee Structures and Competitive Pressures

VanEck’s filing revealed a management fee of 0.20% for its Ethereum fund, aligning closely with Franklin Templeton’s 0.19% fee. BlackRock, however, has yet to disclose the fee structure for its iShares Ethereum Trust (ETHA). Balchunas noted that VanEck’s competitive fee could pressure BlackRock to set their fees below 0.30%.

Final Approval and Launch Timeline

The approval of the S-1 registration statement is one of the final steps before these ETFs can be listed on Wall Street. Balchunas predicts that these funds will launch in the first week of July, right before the U.S. Independence Day holiday.

In May, the SEC approved a rule change allowing major asset managers, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise, to list and trade eight spot Ether ETFs. Fidelity’s updated filing indicated that its affiliate, FMR Capital, has seeded the fund with $4.7 million at $38 per share. Bitwise also reported a potential $100 million investment from Pantera Capital upon its ETF’s launch.

New and Revised Proposals

Hashdex is also seeking approval for an ETF that combines spot Bitcoin and Ether, having previously abandoned plans for an Ether-only ETF.

Political Influence on ETF Approval

Bloomberg ETF analyst James Seyffart suggested that the approval of spot Ethereum ETFs was likely influenced by political considerations. Seyffart noted that the political climate, including actions from the Biden administration and responses from the crypto community, played a significant role in the approval process.

While Seyffart believes that additional crypto ETFs, including Solana, are unlikely without significant regulatory changes, crypto investor Brian Kelly has speculated that Solana could be the next cryptocurrency to have a spot ETF in the U.S. Kelly, founder and CEO of the BKCM Digital Asset Fund, suggested on CNBC’s ‘Fast Money’ that Solana could follow Bitcoin and Ethereum in gaining ETF approval.

Meanwhile, Bitwise has launched its first Ether ETF commercial, a 39-second clip showcasing Ethereum’s advantages, which can also be minted on the Ethereum blockchain.