Issuing firms with the approval of the U.S. Securities and Exchange Commission (SEC) to launch spot Ethereum ETF products have filed in their management fees with Grayscale pulling a wise move. The crypto asset manager filed the lowest gas fee of just 0.15% with the SEC for its mini Ethereum ETF.
Strategic Low Fees Set Grayscale Apart
Aside from filing the lowest transaction fees, Grayscale has also stated it will grant a waiver for trading up to $2 billion and for the first six months, from the commencement of trading of the shares. This trumps 21Shares’ six months allowance and a sum pegged at $500 million for a gas fee of 0.21%
For context, the ETF issuers have very competitive fees. BlackRock’s iShares Ethereum Trust will have a fee of 0.25%, as for the Invesco-Galaxy duo, their management fees are set at 0.25% while VanEck and Franklin Templeton plans to charge 0.20% and 0.19% respectively.
Scott Johnsson, renowned Finance lawyer lauded the move by Grayscale as being strategic in a post on X. “This is what I was expecting yesterday. Grayscale wised up,” Johnsson wrote.
Lowered to 15 bps, with full waiver for first $2 bn. This is what I was expecting yesterday. Grayscale wised up. https://t.co/Y0sXyTS0JT pic.twitter.com/nyuuDuTUxq
— Scott Johnsson (@SGJohnsson) July 18, 2024
Will Grayscale’s Low Fees Help Inflows?        Â
Grayscale’s mini ETF received regulatory nod from the SEC earlier this month and is expected to launch for trading before July ends. Based on industry signals, there is every likelihood that spot Ethereum ETF will be launched before July ends.
Eric Balchunas, Senior ETF Analyst for Bloomberg is optimistic with the Grayscale move. He believes the low gas fees will help the asset manager’s cause when trading kicks off.
Traditionally, Grayscale is famous for its high sponsor fee structure as was evident with its spot Bitcoin ETF GBTC. However, as rightly noted by BGEcrypto, the reduction in transaction fees was anticipated to stem the significant outflows it was witnessing.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGEcrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
