BlackRock Announces 0.25% Fee for Spot Ethereum ETF, Launch Set for Next Week

For its planned spot Ethereum ETF, which is anticipated to start next week, BlackRock has disclosed a 0.25% fee.

This charge will be paid quarterly after daily accrual at an annual rate. BlackRock intends to lower this charge to 0.12% for the first 12 months or until the ETF’s assets reach $2.5 billion in order to entice investors.

BlackRock sets 0.25% fee in latest round of amended forms as firms gear up to launch spot Ethereum ETFs https://t.co/9J62OyLuFj

— The Block (@TheBlock__) July 17, 2024

In advance of their own spot Ethereum ETFs, a number of other asset managers have also made updates to their fee schedules. Similar to this, Fidelity established a 0.25% fee, which it will fully waive until December 31, 2024.

The least expensive fee is 0.19% charged by Franklin Templeton, which will not charge it until January 31, 2025, or until the ETF’s assets reach $10 billion. With waivers for the first six months or until $500 million and $1.5 billion in assets, respectively, Bitwise and VanEck have set their fees at 0.20%.

A 0.21% fee was established by 21Shares, which is waived for the first six months or until $500 million in assets.

Having transitioned from the Grayscale Ethereum Trust, Grayscale sets itself apart with a substantially higher cost of 2.5% for its main spot Ethereum ETF. A smaller Ethereum Mini Trust, with a 0.25% charge waived for the first 12 months or up to $2 billion in assets, has also been introduced.

Like Fidelity and BlackRock, Invesco Galaxy has established a charge of 0.25%. ProShares has not yet revealed their pricing schedule.

Exchanges are now able to offer and trade these spot Ethereum ETFs thanks to recent regulation amendments granted by the SEC. Final approvals for these ETFs, however, are anticipated the following week, with trading scheduled to start on July 23.

These costs are reasonable, according to Bloomberg ETF analyst Eric Balchunas, but he doubts that new ETFs would draw enough capital to counteract any withdrawals from Grayscale’s converted ETF because of their higher expense.

🔥 JUST IN: BlackRock Announces Game-Changing 0.25% Fee for Spot Ethereum ETF as Issuers Update Filings! 🚀👀#Ethereum #ETF #CryptoNews
Source: https://t.co/wsQmSU6np2 pic.twitter.com/Agkn09UoBQ

— Web3Market – Products & News (@Web3Market_site) July 18, 2024

The last procedures before approval include the revised pricing schedules and waiver times. Exchanges were able to list and trade eight spot Ethereum ETFs after the SEC approved 19b-4 forms for them on May 23. The registration statements must then become effective, which is expected to happen shortly, according to the SEC.

Asset managers are competing to draw investors with competitive fees and initial waivers in a heated race to create spot Ethereum ETFs. BlackRock wants to establish its ETF as a serious competitor in this developing industry, which is why it is lowering its cost at first.