As the July 23 deadline approaches for the launch of the ETH (European Exchange Traded Fund) spot market, asset management firms have started to a statement Their management fees, indicating imminent approval of the applications by the US Securities and Exchange Commission (SEC).
BlackRock’s Fee-Cutting Strategy
According to BlackRock’s amended S-1 registration statement filed Wednesday, the asset management giant will charge a 0.25% fee. Administrative fees For its Ethereum ETH exchange-traded fund.
Fees will be calculated daily at an annual rate of 0.25% of the Fund’s net asset value and will be paid at least quarterly in US dollars, in kind, or a combination of the two.
BlackRock has also announced its intention to waive all or part of fees for certain periods, with Fee reduction to 0.12% during the initial launch period of the ETF, which will remain in effect until the ETF has been in operation for 12 months or until it has accumulated $2.5 billion in net assets, whichever occurs first.
With the same fee-cutting strategy for its ETHA ETF during its first 12 months of trading, BlackRock is likely to see the biggest inflows, as it did with its IBIT Bitcoin ETF, which is approaching $20 billion in assets under management (AuM) after seven months of trading.
Franklin Templeton offers the lowest fees.
The Franklin Templeton ETF will charge the lowest fees at 0.19%, while Bitwise and VanEck have set theirs at 0.20%. The 21Shares Core Ethereum ETF will charge 0.21%, and Fidelity and Invesco Galaxy will match BlackRock’s 0.25% fee.
It is worth noting that five issuers, including Bitwise, Fidelity, Franklin Templeton, 21Shares, and VanEck, plan to waive their fees initially, with specific terms for each issuer. Exemption periodFor example, VanEck fees will be waived for the first 12 months or until the fund’s net assets reach $1.5 billion, as shown in the image below.
Finally, Grayscale announced the creation of the Grayscale Ethereum Mini Trust, which offers a more competitive fee of 0.25%, in line with the fee structure of the BlackRock ETF.
Grayscale also revealed that 10% of the assets from its Ethereum ETF will be used to create an Ethereum Mini Trust, providing $1 billion. Seed financing.
ETFs Will Drive ETH Price Rally
Expected inflows into Ethereum ETFs are likely to positively impact the price of ETH and the broader cryptocurrency market, as has been the case historically. Data Statistics compiled by K33 Research show that new capital flowing into Bitcoin via ETFs has led to a 46% increase in the cryptocurrency’s market cap in 2024.
Veitel Lund, a senior analyst at K33, expects a similar trend with Ethereum, suggesting that ETFs could boost the price of Ether in the second half of the year and facilitate the entry of lateral capital into the crypto market.
Meanwhile, ETH is trading at $3,460, showing sideways movement on the 24-hour timeframe with a 0.6% decline since Wednesday’s price. However, the second-largest cryptocurrency in the market is still up 8% over the past week.
Featured image by DALL-E, chart by TradingView.com
