Ethereum ETF Issuers Enter Race For Sponsor Fees With Franklin ETF Charges 0.19%

Key Points:

• Major Ethereum ETF issuers have filed updated S-1 forms with the SEC for Ethereum ETF applications.
• Franklin Templeton leads the competition by announcing a competitive 0.19% sponsor fee for its Ethereum ETF.
• Despite regulatory hurdles and amendments by Ethereum ETF issuers, industry experts predict a June-end launch for spot Ethereum ETFs.

Several major investment firms, including Franklin Templeton, VanEck, Invesco Galaxy, Bitwise, and Fidelity, have advanced their Ethereum (ETH) Exchange-Traded Fund (ETF) aspirations, filing updated S-1 forms with the Securities and Exchange Commission (SEC).

Ethereum ETF Issuers Enter Race For Sponsor Fees

Franklin Templeton, in a strategic move to entice investors, has initiated a potential fee war by announcing a competitive 0.19% sponsor fee for its spot Ethereum ETF, marking the lowest among its competitors. Eric Balchunas, Bloomberg’s Senior ETF Analyst, highlighted the significance of this move, dubbing it “the opening shot in the ETH ETF fee war.”

While other Ethereum ETF issuers such as VanEck, Invesco Galaxy, Bitwise, and Fidelity filed edited S-1 applications simultaneously, none have disclosed their sponsor fees. Additionally, 21Shares amended its S-1 form, removing Ark’s name and rebranding the fund to 21Shares Core Ethereum ETF.

Spot Ethereum ETF Launch Anticipated Despite Regulatory Hurdles

These developments follow the SEC’s approval of April 19 filings on May 23, bringing spot Ethereum ETFs closer to reality, with industry experts anticipating a launch by the end of June.

BlackRock and Grayscale have also made notable amendments to their filings. However, despite meeting the SEC’s end-of-month deadline, prospective Ethereum ETF issuers may need to address regulatory comments, potentially delaying the commencement of trading for these financial products.

The race to launch spot Ethereum ETFs mirrors the successful introduction of similar products for Bitcoin, with issuers striving to provide investors with accessible avenues to engage with Ethereum’s price movements. Bitwise, for instance, has opted to waive all fees on its spot Bitcoin ETF for the initial six months of trading and up to the first $1 billion in assets.