BlackRock sets spot Ether ETF fee at 0.25% amid rush of S-1 filings

Asset management firm BlackRock has set the fee for its spot Ethereum exchange-traded fund at 0.25% ahead of a potential launch next week.

BlackRock’s S-1 registration statement, filed on July 17, explains its fee will be accrued daily at an annualized rate equal to 0.25% of the fund’s net asset value and is payable at least every three months in US dollars, in-kind or a combination of both.

It could “waive all or a portion” of the fee for certain periods, it said, adding that it plans to do this upon launch.

Similar to the iShares Bitcoin Trust launched, BlackRock’s spot Ether ETF will start trading at a 0.12% fee until 12 months pass or after it amasses $2.5 billion in net assets, whichever comes first.

Others have also indicated their proposed fees and waiver periods amid a flood of amended S-1 registration forms. 

The Franklin Templeton-issued spot Ether ETF will charge the lowest fee, 0.19%, while the Bitwise Ethereum ETF and VanEck Ethereum ETFs areset at 0.20%.

The 21Shares Core Ethereum ETF’s fee is set at 0.21%, while Fidelity and Invesco Galaxy will offer the same 0.25% fee as BlackRock.

Five issuers will waive fees at launch

However, Bitwise, Fidelity, Franklin Templeton, 21Shares and VanEck have proposed to completely slash their fees initially.

VanEck’s fee will be waived for the first 12 months or after it amasses $1.5 billion in net assets, whichever comes first.

Bitwise will waive its fee for the first six months or $0.5 billion in net assets, while Franklin set a Jan. 31, 2025, or $10 billion threshold.

Fidelity will waive fees until Jan. 1, 2025, when the fees will increase to 0.25% thereafter.

Meanwhile, Grayscale is leaving its spot Ether exchange-traded fund fee at 2.5%. However, its now-approved Grayscale Ethereum Mini Trust will offer a much more competitive fee of 0.25%.

Grayscale said 10% of Grayscale’s spot Ethereum ETF will establish its Ethereum Mini Trust, providing $1 billion in seed funding.

Related: Ether could outperform Bitcoin after spot ETF launch: Kaiko

Reports state that at least three ETF issuers — namely BlackRock, Franklin Templeton and VanEck — have already received “preliminary approval” from the United States securities regulator.

Bloomberg ETF analyst Eric Balchunas expects the S-1s will be signed off next Monday after trading hours, allowing the spot Ether ETFs to officially start trading on Tuesday, July 23.

Bitwise’s chief investment officer, Matt Hougan, speculated that the spot Ether ETFs could attract up to $15 billion in inflows in the first 18 months of trading — roughly the same amount that the spot Bitcoin ETFs have mustered since launching six months ago.

If approved, the spot Ether ETFs would be listed on the Nasdaq, New York Stock Exchange and the Chicago Board Options Exchange.

Magazine: Ethereum’s recent pullback could be a gift — Dynamo DeFi