Spot Ethereum ETF Issuers Update Fees and Seed Investments in Latest Filings
Various firms competing for a foothold in the spot Ethereum ETF market submitted amended registration statements late in the workweek. These filings provided additional details on seed investments and fees as they await final approval from the Securities and Exchange Commission (SEC).
On Friday afternoon, BlackRock, VanEck, Franklin Templeton, Grayscale Investments, Invesco Galaxy, and 21Shares all submitted their amended statements. Notably, Franklin Templeton previously set its fee at 0.19% for its spot Ethereum ETF in May, while VanEck disclosed a fee of 0.20% on Friday.
Eric Balchunas, senior Bloomberg ETF analyst, commented, “VanEck is in with their fee set at 0.20%, which is fairly low, similar to Franklin’s 0.19%. This puts some pressure on BlackRock to aim for at least under 30 basis points. It looks like Ethereum ETF fees may be as low as or lower than those for Bitcoin.”
The SEC had approved 19b-4 forms for eight spot Ethereum ETFs the previous month, with issuers now awaiting the effectiveness of their S-1 statements (or S-3 in the case of Grayscale, transitioning its Ethereum Trust to an ETF) before trading can commence. Earlier this year, the SEC approved several spot Bitcoin ETFs with fees ranging from approximately 0.21% to 0.39%.
Regarding seed investments, 21Shares US LLC, sponsoring the 21Shares Core Ethereum ETF, disclosed a seed investment of $340,739, while Franklin Templeton revealed a $100,000 seed investment for its ETF. Grayscale and Invesco Galaxy also updated their filings with additional Ethereum-related disclosures and investment details.
Fidelity made significant strides in its Ethereum ETF efforts, revealing a $4.7 million seed investment through its affiliate, FMR Capital, Inc. This investment, detailed in an amended filing, included the purchase of 125,000 shares and the acquisition of 1,250 ether using proceeds from seed baskets.
Bloomberg Senior ETF Analyst Eric Balchunas said in a post on X on Friday, “Fidelity kicking off the the S-1-athon. No fee included yet tho (Franklin only one w fee so far at 19bps). Bitwise didn’t include either. Everyone likely waiting till last min and/or on BlackRock to disclose to see what they need to orbit around.”
Bitwise updated its registration with Pantera Capital Management LP showing interest in up to $100 million of shares and a $2.5 million seed investment.
Balchunas anticipates further amended S-1 filings before the products are expected to launch by July 2.
