- Fees will be waived off completely up to six months after listing, or until the fund receives $500M.
- Eight potential issuers will be likely competing next week to offer spot Ethereum ETFs.
In an amended S-1 filed with US SEC on July 17, asset manager 21Shares detailed their plans to waive management fees for their 21Shares Core Ethereum ETF (CETH) completely for up to six months after listing, or until the fund receives $500 million. The fees were set at 0.21%.
Moreover, reports indicate that US authorities have started to grant spot Ether (ETH) ETF issuers preliminary clearance to begin listing as early as July 23, which is likely to increase competition among these firms.
Tough Competition
During the first few months of the spot ETH funds’ essential debut, 21Shares is joining an increasing number of issuers who are reducing costs to attract investors. According to a document made public on July 8, VanEck intends to exclude investors from paying the 0.20% management fee. This would be for the first year after listing, or until the fund acquires $1.5 billion in AUM. Eight potential issuers will be likely competing next week to offer spot Ethereum ETFs.
Other ETH ETF sponsors’ filings also hint at the potential for short-term discounts; they include BlackRock and Franklin Templeton. This year’s listing of Bitcoin ETFs set the stage for the current fee fight. Half of the almost dozen Bitcoin exchange-traded funds (ETFs) on the market have reduced or temporarily eliminated management fees in an effort to entice investors to move their money elsewhere.
In the months after debut, analysts predict that ETH ETFs may get up to $10 billion in inflows. Thus, driving Ether prices to record highs by year’s end.
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