Key Takeaways
- 21Shares will charge investors a 0.21% management fee for its spot Ethereum fund.
- The SEC’s deadline for final S-1 forms may trigger a fee war among Ethereum ETF issuers, similar to what happened with spot Bitcoin ETFs.
21Shares has filed an updated S-1 form with the Securities and Exchange Commission (SEC) for its spot Ethereum exchange-traded fund (ETF), setting a management fee at 0.21%. The ETF will operate under the ticker symbol “CETH.”The recent filing comes as the SEC has called on Ethereum ETF issuers to return their final S-1 forms on Wednesday, according to Bloomberg ETF analyst Eric Balchunas. He said spot Ethereum ETFs will launch on July 23.The ETF issuers filed their S-1 forms on July 8 but most of them left fees out of their forms. According to Balchunas, this is likely a strategy by asset managers to check how competitive the funds’ fees are, especially BlackRock’s. The analyst believes BlackRock’s fee is a key detail that could boost competition between issuers.The launch of spot Bitcoin ETFs earlier this year led to a fee war among issuers. A similar dynamic could play out for spot Ethereum ETFs, especially as issuers will submit their final S-1 forms today.
Franklin Templeton was the first to disclose its Ethereum ETF management fee. The firm sets a 0.19% sponsor fee for its spot Ethereum ETF. Meanwhile, VanEck sets a 0.20% sponsor fee for its spot Ethereum fund.Invesco and Galaxy will charge a 0.25% management fee for their Ethereum product, which is considerably higher than the fees being disclosed for spot Ethereum ETFs.21Shares’ current fee for its spot Bitcoin ETF is also 0.21% of net asset value, with the fee being waived for the first $1 billion in assets.
