21Shares sets Ethereum spot ETF fee at 0.21% in its final S-1 form

Source: Crypto Briefing

21Shares has filed its final S-1 form with the Securities and Exchange Commission (SEC) for its spot Ethereum exchange-traded fund (ETF), setting a competitive 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. The Ethereum ETF issuers filed their S-1 forms on July 8 but most of them left fees out of their forms.

According to Bloomberg ETF analyst Eric Balchunas, this is likely a strategy from asset managers to check how competitive the funds’ fees are, especially BlackRock’s. Analysts believe 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 reveal its Ethereum ETF management fee. The firm sets a 0.19% sponsor fee for its spot Ethereum ETF and will waive the fee for the first $10 billion in assets for six months.

VanEck sets a 0.20% sponsor fee for its spot Ethereum ETF, which it intends to waive for the first $1.5 billion in assets until an unstated date in 2025.

Invesco and Galaxy will charge a 0.25% management fee for their spot Ethereum ETF.

The Grayscale Ethereum Trust charges a 1.5% annual management fee, which is considerably higher than the fees being disclosed for spot Ethereum ETFs.

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Author: Vivian Nguyen