21Shares Announces Fee of 0.21% for Ethereum ETF, Offers Temporary Release
TLDR
21Shares has set a management fee of 0.21% for Ethereum ETF (CETH). The company plans to defer payments for up to 6 months or until the fund reaches $500 million in assets. Other issuers such as VanEck and Franklin Templeton have also announced competitive fees. The SEC requested the final S-1 forms from ETF issuers in 2015. It may start on July 23. Analysts expect a similar fee war with Bitcoin ETFs early this year.
Asset manager 21Shares has filed an amended S-1 form with the US Securities and Exchange Commission (SEC) for its position as an Ethereum exchange-traded fund (ETF), revealing key details about its fee structure and launch strategy.
In the year The July 17, 2024 filing comes as the cryptocurrency industry eagerly anticipates the approval and launch of several Ethereum ETFs.
According to the filing, 21Shares set a management fee of 0.21% of the asset value for the 21Shares Core Ethereum ETF (CETH).
But in a move to attract early investors, the company plans to waive this fee entirely until six months after the fund's listing, or until it accumulates $500 million in assets under management.
This competitive pricing strategy mirrors the approach taken by other ETF issuers in the rapidly evolving crypto ETF landscape. For example, VanEck previously announced a 0.20% management fee for its Ethereum ATM, which it plans to waive for up to one year or until the fund reaches $1.5 billion in assets. Franklin Templeton lowered its fee to 0.19%, while Invesco and Galaxy opted for a slightly higher fee of 0.25%.
The ongoing fee war among Ethereum ETF issuers is reminiscent of the competition with the spot Bitcoin ETF earlier this year. Analysts expect this trend to continue as providers battle for market share in what could be a valuable new investment vehicle for institutional and retail investors.
The SEC has reportedly called on Ethereum ETF issuers to file their final S-1 forms by July 17. To appeal to investors.
Eric Balchunas, an analyst at Bloomberg ETFs, suggested that the strategy of leaving fees out of the initial offering may be a way for asset managers to gauge the competitive landscape, particularly in relation to BlackRock's offer.
UPDATE: Nate's instincts were right, the SEC finally heard it and went back to the issuers today, ask them to return their FINAL S-1s on Wednesday (including payment) and then ask for effectiveness on Monday after closing for the Tuesday 7/23 launch. This does not allow for any unpredictable last minute issues.
— Eric Balchunas (@EricBalchunas) July 15, 2024
The fee announced by BlackRock, one of the world's largest asset managers, is expected to be a key factor in shaping the overall competitive environment.
The approval and launch of the Ethereum ETF comes at a time when institutional interest in cryptocurrencies is growing.
Analysts predict that these new investment vehicles could attract up to $10 billion in inflows in the months following their launch, which could push Ethereum's price to new all-time highs by the end of the year.
The introduction of Ethereum ETFs is fueling speculation that other cryptocurrency ETFs may be adopted in the future. The Chicago Board Options Exchange has already submitted applications for Spot Solana ETFs, with a decision expected around March 2025.
As the July 23 launch date approaches, all eyes will be on the SEC and ETF issuers as we prepare to launch.
Some analysts think that the launch could raise the price of ETH to $5000 in a short period of time, a big profit during the year.
