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