VanEck has filed an amended SEC Form S-1 stating that the fee for its proposed spot Ethereum ETF will be waived until 2025 or until the fund’s assets under management reach $1.5 billion. After reaching either milestone, a 0.2% fee will be imposed. The firm currently manages $102 billion in assets across its trading funds, including the VanEck Bitcoin Trust. Franklin Templeton, another asset manager, plans to waive its sponsor fee for six months or until its spot ETH fund reaches $10 billion, after which it will charge a 0.19% fee.
Earlier this month, VanEck predicted that the price of ETH could reach $22,000 by 2030 and labeled Ethereum as “digital oil.” However, there is still no confirmation on when trading will commence. Securities and Exchange Commission (SEC) Chairman Gary Gensler recently mentioned that the approval process for U.S. spot Ethereum ETFs is progressing smoothly and trading is expected to begin sometime this summer. VanEck filed an 8-A form with the SEC, leading many to speculate that U.S. spot Ethereum ETFs could be just a week away from trading, as was the case with Bitcoin spot ETFs.
Bitwise’s chief investment officer, Matt Hougan, believes that U.S. spot Ethereum ETFs could potentially attract nearly $15 billion in net inflows within the first 18 months of trading. Hougan’s estimates do not account for the potential negative impact of not having Ethereum staking in the ETFs, but he believes it will not greatly impact them. On the other hand, Grayscale updated its disclosure statement for its Ethereum Trust, stating that investors would be at a competitive disadvantage buying shares instead of buying and staking Ethereum.
Bitwise also highlights several positive factors for Ethereum, such as increasing stablecoin supply, regulatory clarity, and the positive impact of Ethereum’s upcoming Dencun upgrade. Hougan believes that even with a conservative estimate of $15 billion in net inflows within 18 months, it will have a significant impact on the Ethereum market. K33 Research anticipates net inflows of $4 billion into Ethereum ETFs within five months of their launch, citing growing interest in the market. Pentra Capital Management LP has announced plans to invest $100 million when Bitwise’s spot Ethereum ETF begins trading, indicating strong investor interest in the product.
