Yahya 
Asset management firm BlackRock has announced a 0.25% fee for its spot Ethereum exchange-traded fund (ETF) as it prepares for a potential launch next week. The details, filed in BlackRock’s S-1 registration statement on July 17, outline that this fee will be accrued daily at an annualized rate and payable every three months in US dollars, in-kind, or a combination of both.
Fee Structure and Waivers
BlackRock has indicated that it may waive the entire fee or a portion of it initially, planning to launch with a reduced fee similar to its iShares Bitcoin Trust. The spot Ether ETF will trade at a 0.12% fee for the first 12 months or until it reaches $2.5 billion in net assets, whichever comes first.
Other issuers have also proposed their fees and waiver periods:
- Franklin Templeton: 0.19% fee, the lowest among competitors.
- Bitwise Ethereum ETF: 0.20% fee.
- VanEck Ethereum ETF: 0.20% fee.
- 21Shares Core Ethereum ETF: 0.21% fee.
- Fidelity and Invesco Galaxy: Both at 0.25%, matching BlackRock’s rate.
Several issuers plan to waive fees initially:
- VanEck: Waives fees for the first 12 months or until $1.5 billion in net assets.
- Bitwise: Waives fees for the first six months or until $0.5 billion in net assets.
- Franklin Templeton: Fee waived until January 31, 2025, or until $10 billion in net assets.
- Fidelity: Waives fees until January 1, 2025, with an increase to 0.25% thereafter.
Grayscale stands out with its spot Ether ETF fee at 2.5%, but its newly approved Grayscale Ethereum Mini Trust will offer a more competitive fee of 0.25%. Grayscale plans to seed the Mini Trust with $1 billion.
Regulatory Approvals and Launch Expectations
Reports indicate that BlackRock, Franklin Templeton, and VanEck have received “preliminary approval” from the United States Securities and Exchange Commission (SEC). Bloomberg ETF analyst Eric Balchunas predicts that the SEC will sign off on the S-1 filings next Monday after trading hours, enabling the spot Ether ETFs to begin trading on Tuesday, July 23.
Market Impact and Predictions
Bitwise’s Chief Investment Officer Matt Hougan anticipates that the spot Ether ETFs could attract up to $15 billion in inflows within the first 18 months of trading, paralleling the success of the spot Bitcoin ETFs launched six months ago. If approved, these ETFs will be listed on the Nasdaq, New York Stock Exchange, and the Chicago Board Options Exchange.
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