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.” This comes as the SEC has called on Ethereum ETF issuers to return their final S-1 forms by Wednesday, with spot Ethereum ETFs set to launch on July 23.
The ETF issuers initially filed their S-1 forms on July 8 without disclosing fees. According to Bloomberg ETF analyst Eric Balchunas, this was a strategic move by asset managers to assess the competitiveness of their fees, particularly BlackRock’s. Balchunas believes that BlackRock’s fee will be a key factor in driving competition among issuers in the Ethereum ETF market.
The entrance of spot Bitcoin ETFs earlier this year sparked a fee war among issuers, and a similar dynamic is expected for spot Ethereum ETFs. Issuers are expected to finalize their S-1 forms today, with Franklin Templeton revealing a 0.19% sponsor fee for its spot Ethereum ETF, VanEck setting a 0.20% sponsor fee, and Invesco and Galaxy opting for a higher 0.25% management fee for their Ethereum products.
Notably, 21Shares also offers a spot Bitcoin ETF with a 0.21% management fee, with the fee being waived for the first $1 billion in assets. This move by 21Shares could set the stage for a competitive fee environment in the burgeoning Ethereum ETF market, as investors closely observe fees, performance, and other factors when deciding where to allocate their capital.
As the demand for cryptocurrency investment products continues to grow, the introduction of spot Ethereum ETFs could provide investors with a new way to gain exposure to the digital asset. With fees playing a critical role in investors’ decision-making process, the competitive landscape in the Ethereum ETF market is expected to intensify as issuers strive to attract investors with attractive fee structures and performance metrics.
Ultimately, the launch of spot Ethereum ETFs and the ensuing competition among issuers could offer investors more choices and opportunities to participate in the growing Ethereum market. As the market continues to evolve, investors will need to carefully assess various factors, including fees, performance, and regulatory considerations, to make informed decisions about their cryptocurrency investments and navigate the rapidly changing landscape of digital assets.
