Ethereum ETFs Update Trading Fees

Close to the day the Ethereum spot ETF is officially traded on the exchange, ETF issuers also take advantage of updating the transaction fees for their products.

Trading fees of ETFs are one of the factors that investors are interested in when deciding to buy an ETF. The reason is that ETFs of the same type use the same underlying asset, such as Bitcoin or Ethereum, so the profit when investing in an ETF also depends on whether the fees are high or low.

First, we need to mention the giant BlackRock, they just set a 0.25% fee for their Ethereum spot ETF product. It also said it would waive part of the fee, reducing it to 0.12% for one year after listing and for the first $2.5 billion in assets.

BlackRock CEO recently praised "Bitcoin is a true financial tool" on CNBC.

Next is 21Shares with a 0.21% fee, as well as a fee waiver for six months from the date the ETF lists or within the first $500 million, whichever is met first.

Bitwise chose a 0.20% fee, free for the first six months for the first 500 million USD in assets.

Invesco Galaxy's fee is 0.25%, VanEck's is 0.20%. VanEck waives fees for one year after the ETF is listed and for the first $1.5 billion in assets.

Fidelity also sets a fee of 0.25% but is free until the end of 2024.

Franklin Templeton sets the fee at 0.19%, free until January 31, 2025 for the first $10 billion of the fund's assets.

Among the 10 ETF organizations, Grayscale has the highest trading fees. The Grayscale Ethereum Trust sets fees at 2.5%, which for comparison is 10 times higher than Fidelity's FETH. Partly because of such high fees, Grayscale's ETHE is forecast to outflow $3 billion in the first month.

In addition, Grayscale also owns the Ethereum Mini Trust fund, equal to 10% of the Ethereum Trust fund, providing $1 billion in seed round funding. This mini fund has a fee of 0.25%.

Bloomberg ETF watchers have predicted that the Ethereum ETF will be trading next week on July 23, after the SEC urged issuers to complete their S-1 filings once again.

Another positive signal is that in a recent interview with Coinage, Republican SEC Commissioner Hester Peirce left open the possibility that ETH's staking feature could be reconsidered.

"Ms. Hester Peirce has said that both the staking and initialization/redemption of the underlying assets of both BTC and ETH ETFs may be reconsidered."

Analysts are hopeful that the ETH ETF could add a staking feature, as Variant Chief Legal Officer Jake Chervinsky cited:

“There is no legitimate reason for the SEC to prevent ETH ETF staking.

Staking ETH is not a security and investors can fully understand the risks of the staked product and decide for themselves whether they want to accept that risk.

It will take time before the ETH staking ETF is launched, but in my opinion it's a matter of "when", not "if".

Ethereum price has had a strong recovery since the dump to $2,800 due to the news of Mt. Gox debt repayment in the first week of July. Currently, ETH is trading around 3,420 USD.