[06/25/24] Ethereum ETF Fee Fray Begins

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WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES

The spot Ethereum ETF saga inched closer to a finale last week with the submission of multiple amended S-1 prospectuses late Friday, but largely missing were the fees issuers will be charging investors.

As of this writing, only Franklin Templeton and VanEck had stated their expense ratios with the former at 19 basis points (bps) and the latter—detailed in its updated S-1—at 20 bps.

Notably absent among the remaining applicants are BlackRock and Fidelity fees for the ETFs, which will track the ongoing price of ether, the second largest crypto by market value and token of the Ethereum blockchain.

Those financial services giants have led the spectacular rise in the spot bitcoin ETF market with BlackRock’s iShares Bitcoin Trust (IBIT) generating $17.6 billion in inflows. Their resources make them logical candidates to play similar frontrunning roles for ether-focused funds.

But will they try to match Franklin and VanEck’s low fees??

Save for Grayscale, a conversion from a trust that entered the spot bitcoin fray from a different perspective, issuers competed fiercely on fees in the run-up to the listing of their products. A similar contest now seems to be brewing for Ethereum.

By James Rubin

Below is a roundup of the key developments in the ETF industry for the seven-day period ending June 21, 2024:

Pantera Eyes $100M of Spot Ether ETF Shares The venture capital giant is a major investor in crypto initiatives.

XLK Rebalancing to Reverse Apple, Nvidia Stock Positions The $72 billion tech sector fund is set for a major allocation shift.

Spot Bitcoin ETF Outflows Hit $813M Since June 10 Flows to the 11 products have fallen off as bitcoin's price has dropped amid profit taking.

Spot Ether ETFs Likely to Debut by July 2: Report The prediction from a Bloomberg analyst came days after the SEC chair said approval would occur this summer.

ETF Spotlight: SHOC Soars on Nvidia Euphoria SHOC's share price has jumped over the past month as Nvidia has surged.

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Featured Fund

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TALK ETF’S VIDEO SERIES

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