BlackRock sets 0.25% fee in latest round of amended forms as firms gear up to launch spot Ethereum ETFs
Quick Take Firms vying for a spot Ethereum ETF filed what could be final amended registration statements before getting the go-ahead from the U.S. Securities and Exchange Commission to begin trading, as analysts have predicted. Firms have set their fees over the past few weeks. Financial heavyweights BlackRock and Fidelity disclosed their fees on Wednesday.
Asset management giant BlackRock set its fee at 0.25% for its spot Ethereum product as firms file amended forms ahead of an expected launch date next week.
BlackRock said it could "waive all or a portion" of the fee for certain periods of time, according to an amended S-1 registration statement filed on Wednesday.
"The Sponsor’s Fee is accrued daily at an annualized rate equal to 0.25% of the net asset value of the Trust and is payable at least quarterly in arrears in U.S. dollars or in-kind or any combination thereof," the firm said in its amended form. "The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s Fee for stated periods of time."
ETF issuer 21Shares set a 0.21% fee, which will be waived for six months starting on the day the shares are listed or during the first $500 million, whichever comes first, according to its amended S-1 registration statement filed on Wednesday.
Bitwise also announced its fee on Wednesday and set it at 0.20%, according to its amended filing . The firm previously said it would waive the sponsor fee for the first $500 million in assets but did not yet disclose what the fee would be.
Grayscale also sets its fee for the Grayscale Ethereum Trust at 2.5%, significantly higher than the other issuers. Grayscale did not immediately respond to a request for comment about the fees.
Invesco Galaxy's fee was 0.25%, VanEck's was 0.20% and Franklin Templeton set a 0.19% fee. Fidelity also set its fee at 0.25% on Wednesday but said it would waive the fee through the end of 2024.
Multiple sources have said spot Ethereum ETFs will likely begin trading on July 23.
"Hearing SEC finally gotten back to issuers today, asking them to return final S-1s on Wed (incl fees)," Senior Bloomberg ETF analyst Eric Balchunas posted on X Monday. "And then request effectiveness on Monday after close for a Tuesday 7/23 launch."
Firms have been working to get the U.S. Securities and Exchange Commission's sign-off on their Ethereum products, and they seem to be quickly approaching the finish line. This comes after the SEC approved 19b-4 forms for eight spot Ethereum ETFs on May 23, and issuers would need their registration statements to become effective before launching.
Staking?
The SEC approved those vital forms for spot Ethereum ETFs, notably not including staking. The agency has had an issue with staking services.
Republican SEC Commissioner Hester Peirce told Coinage's Zach Guzmán in an interview posted Wednesday that she could see "something like staking, or any feature of the product," are "always open for reconsideration."
Balchunas said it's possible to have staking and in-kind creation if there is a change in the presidential administration.
"Hester Peirce saying what we thought but nice to hear it directly: both staking and in-kind creation/redemption for etc/btc ETFs are 'open for reconsideration' (if there's a change at POTUS obv," Balchunas posted on X.
Variant Chief Legal Officer Jake Chervinsky said it's a when, not if, for the possibility of staking in spot Ethereum ETFs.
"There's no good reason why the SEC should prevent ETH ETFs from staking," Chervinsky said on X. Staked ETH isn't a security, and investors can fully understand the risk of a staked product + decide for themselves if they want to take that risk. It'll take a while, but this is 'when,' not 'if,' imo."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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