21Shares sets Ethereum spot ETF fee at 0.21%, new filing reveals
Some issuers have already revealed their management fees for spot Ethereum ETFs
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 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 by Franklin Templeton and VanEck.
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.
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