As the launch of spot Ethereum exchange-traded funds (ETFs) approaches, a competitive landscape is forming among asset managers eager to attract investors.
On July 9, Invesco and Galaxy announced a management fee of 0.25% for their Invesco Galaxy Ethereum ETF (QETH) in a revised filing with U.S. regulators. This fee is slightly above competitors like VanEck, which plans to charge 0.20%, and Franklin Templeton, which has set its fee at 0.19%.
This competition is beneficial for potential investors, as all proposed fees are significantly lower than the 1.5% management fee currently charged by Grayscale’s Ethereum Trust (ETHE). Grayscale is also planning to launch its own spot Ethereum ETF but has not yet disclosed its fee structure.
The current fee competition mirrors earlier trends in the Bitcoin ETF market, where competitive pricing led to fee reductions and temporary waivers, benefiting investors. Currently, eight issuers are preparing to launch Ethereum ETFs, with anticipated fees ranging from 0.19% to 0.30%.
Bitwise is taking a bold approach by implementing a 6-month fee waiver until its Trust’s assets hit $500 million, heightening the competitive environment. While the exact launch date for these ETFs remains uncertain, analysts are optimistic about a near-term approval, with July 15 being suggested by some as a potential listing date.
SEC Chairman Gary Gensler has indicated a favorable timeline for approvals, expecting them “over this summer.” This, along with recent amendments from all eight issuers, has fueled anticipation in the market.
Notably, none of the proposed spot crypto ETFs include staking capabilities due to pushback from the U.S. Securities and Exchange Commission, leading major sponsors like Ark Investments and Fidelity to abandon such plans.
The impending launch of Ethereum ETFs marks a significant step in integrating cryptocurrencies into traditional finance, following the successful rollout of Bitcoin ETFs and paving the way for future crypto-based products. Meanwhile, on June 8, the Chicago Board Options Exchange (CBOE) filed applications for VanEck and 21Shares’ proposed spot Solana ETFs, with a decision expected by March 2025.
As anticipation builds, attention is focused on the SEC and the competing fund managers.
