Ethereum spot ETF issuers continue to address SEC comments.
BlackRock, Fidelity, Franklin Templeton and other Ethereum spot ETF issuers have again updated their S-1 filings as experts approach the date for the possible approval of the listing of these investment funds.
The updated S-1 forms seek to adapt Ethereum ETFs to the latest comments and recommendations from the securities regulator, the US Securities and Exchange Commission (SEC). According to expert reports, the updated S-XNUMX filings BlackRock y Fidelity They do not specify the commission rates that these funds will have for their investors once they begin trading on the market, while the updated S-1s they filed franklin templeton y vaneck Yes, they do reveal the operating rates with which these funds will work.
Grayscale Investments e Invesco Galaxy They also submitted their updated S-1 filings to the SEC, outlining the seed investments of their ether investment funds.
Until now, Bitwise is the only fund issuer that has not yet filed the updated S-1 for its Ethereum spot ETF.
The operational fees that some Ethereum spot ETFs will have
Franklin Templeton Ethereum Fund's operating fees will be 0,19%, just like the Bitcoin ETF it manages. The company is also offering investors in its ether fund a zero fee for the first $10.000 billion in assets under management within a 6-month period.
On the other hand, VanEck revealed that its trading fees for the Ethereum Spot ETF will be 0,20%, while the company plans to waive its operating fees for the first $1.500 billion, until an undisclosed date in 2025.
Eric Balchunas, senior ETF analyst at Bloomberg, commented that the remaining fund issuers looking to launch an Ethereum spot ETF in the United States will likely reveal their mutual fund operating fees next week.
He even commented that issuers are likely to wait until the last minute to announce the trading fees that their spot ETFs will have. This, according to experts, could unleash a fee war similar to the one seen with Bitcoin spot ETFs, in which issuers began to compete to offer the best attractions to clients and win the largest market share, with the aim of conquering the sector.
Additionally, filings by BlackRock, Grayscale Investments and Invesco Galaxy disclosed the seed investments of their funds. Regarding the recent S-1 filings, Balchunas said that the decision is now in the hands of the SEC. He also opined that the disclosure of operating fees for the Franklin Templeton and VanEck funds puts some pressure on BlackRock and the rest of the issuers to keep their fees below at least 30 basis points.
“So far it looks like ETH is going to have fees as low or even lower than BTC”, said the expert.
No staking
Experts believe that the absence of staking in Ethereum spot ETFs that will be listed on the US market will put pressure on issuers to lower the commission rates of the funds, in order to remain attractive and competitive in the market.
Crypto investor David Kim opined that Ethereum spot ETFs will hardly be able to compete in the market if they set operating fees that are too high, due to the absence of staking. He commented that without staking, it is difficult to collect many management fees, as long-term holders can buy ETH through centralized exchanges and stake them directly to earn returns on the cryptocurrency.
Meanwhile, experts continue to consider next July 2 as one of the most likely dates when the SEC could rule and approve the S-1s of the Ethereum spot ETFs. According to Balchunas, July 2 could be the launch day for ether ETFs in the US market.
