As the deadline for the spot Ethereum ETF management fee looms, the competition amongst fund sponsors for the lowest fees and incentives thickens. The latest to file with the United States Securities and Exchange Commission (SEC) is investment firm 21Shares. As per its filing, the 21Shares Ethereum ETF fee will be 0.21%.
Ethereum ETF Issuers’ Competitive Fee Structures
According to Eric Balchunas, Bloomberg’s Senior ETF analyst, the ticker for the 21Shares is “CETH.” These developments became known as the investment firm filed its final S-1 application. It is worthy of note that all applicants are expected to comply before the end of business activities on July 17, 2024.
Already, the Invesco-Galaxy duo have submitted their filings with management fees set at 0.25%. Others are VanEck and Franklin Templeton with plans to charge 0.20% and 0.19% respectively. So far, Invesco and Galaxy have higher fees compared to those of their competitors.
Remarkably, 21Shares is throwing in an incentive to would-be investors as teased in the filing. The firm clearly stated that it intends to waive the 0.21% for the first six months, beginning from the first day of listing. It sets this allowance to a cap of $500 million worth of managed funds. That is, the transaction fee will be free until either of the two conditions are met.
Some stakeholders have, however, criticized 21Shares for pegging the cap at $500 million, emphasizing that this falls short of their offering with Bitcoin. Notably, when 21Shares made a similar offer with the spot Bitcoin ETF, it allowed trading up to the first $1 billion.
21Shares Rolls Out Future Plans
As these issuers continue to showcase competitive transaction fees, there is great expectation from the broader crypto ecosystem that Ethereum ETF trading may commence soon.
Meanwhile, 21Shares is getting busy with other activities as it joined VanEck in applying for a Solana ETF product in the United States. The move set 21Shares as the second issuer to look the way of Solana ETF.
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