As fund sponsors compete on management fees, the proliferation of proposed spot Ethereum ETFs could benefit spot investors.
In an amended filing to United States regulators on July 9, asset administrators Invesco and Galaxy established management fees for the Invesco Galaxy Ethereum ETF (QETH) at 0.25%.
This is the most recent indication of the intensifying competition among exchange-traded fund (ETF) sponsors in anticipation of the spot Ether fund rollout later this month.
Invesco’s fees are marginally higher than those of VanEck and Franklin Templeton, which have disclosed intentions to assess 0.20% and 0.19% in their respective S-1 registrations.
The filings are an initial indication that the digital asset sector’s escalating competition among fund managers is contributing to reducing investor fees.
Grayscale’s Ethereum Trust (ETHE), a closed-end fund established in 2017 and one of the few Ethereum investment vehicles presently accessible to U.S. investors, is charged significantly higher fees than all three fund sponsors.
Grayscale intends to introduce its Ethereum ETF, the Grayscale Ethereum Mini Trust (ETH), shortly; however, it has not disclosed its anticipated management fees.
The listing of BTC ETFs in January was approved by U.S. regulators, which resulted in competition among fund managers, which benefited Bitcoin investors.
To divert investor funds from their competitors, approximately half of the nearly dozen BTC ETFs currently available have either reduced their management fees or temporarily waived them.
Although no specific start date for listings has been specified in any of the S-1 registrations that have been submitted thus far, industry analysts anticipate that spot ETH ETFs may commence trading as early as this month.
The registration filings are the most recent in a series of applications submitted by fund managers for publicly traded crypto investment vehicles.
The Chicago Board Options Exchange (CBOE) submitted applications on January 8 to list VanEck and 21Shares’ proposed spot Solana ETFs on its exchange platform. Around March 2025, it is anticipated that U.S. regulators will have reached a final decision regarding those funds.
To date, none of the spot crypto ETFs that have been proposed include stake. Due to opposition from the U.S. Securities and Exchange Commission, numerous prominent fund sponsors—including Ark Investments Management and Fidelity Investments—withdrew their proposed spot ETH ETFs’ staking plans.
