BlackRock, other issuers update S-1 filing for spot Ethereum ETFs, raising expectations for July launch BlackRock, other issuers update S-1 filing for spot Ethereum ETFs, raising expectations for July launch
BlackRock and Fidelity did not disclose sponsor fees for their funds, while Franklin Templeton and VanEck announced a 0.19% and 0.20% sponsor fee, respectively.
2 min read
Updated: Jun. 22, 2024 at 1:32 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Seven spot Ethereum ETF applicants amended their registration statements with the SEC on June 21, leading to increased expectations of a trading launch in early July.
Franklin Templeton, VanEck, Invesco Galaxy, BlackRock, 21Shares, and Fidelity submitted updated S-1 registrations for their respective funds.
Grayscale submitted an amended S-3 registration for its Ethereum Trust and an additional amended S-1 statement for its mini Ethereum Trust. Bitwise did not amend its registration statement.
Bloomberg ETF analyst Eric Balchunas continued to predict July 2 as an over/under date for the funds’ launch following the latest filings, saying:
“Anyway that’s basically a wrap. Ball in SEC’s court now.”
He also maintained his view that Ethereum ETFs are unlikely to attract more than 20% of the AUM Bitcoin ETFs have attracted.
Fees disclosed
Franklin Templeton disclosed a 0.19% sponsor fee in the updated filing. The firm will waive the fee for the first $10 billion assets for six months. Meanwhile, VanEck disclosed a similar 0.20% sponsor fee, which it intends to waive for the first $1.5 billion assets until an unstated date in 2025.
Balchunas believes the low fees will pressure BlackRock to announce sub-30 basis point sponsor fees for its fund as well. Notably, both BlackRock and Fidelity have yet to disclose sponsor fees for their ETFs.
Experts believe BlackRock’s fee, in particular, will be a key detail that could lead to heightened competition among the firms. Balchunas said the asset manager’s fee is the most important missing detail other than the launch date.
According to the analyst:
“[BlackRock’s] fee is the sun that the rest will need to orbit around.”
The launch of spot Bitcoin ETFs in January notably led to a “fee war” among issuers, each vying to offer competitively low fees. Currently, spot Bitcoin ETF fees largely range between 0.19% and 0.39%, though Grayscale’s GBTC has a higher 1.5% fee.
Seed investments
Invesco Galaxy disclosed a $100,000 seed transaction on June 17 in which the seed investor purchased 4,000 Shares at $25 per share.
Grayscale disclosed a $100,000 seed share purchase for its mini Ethereum trust. On May 31, the sponsor purchased 10,000 shares at $10 per share.
Fidelity said its seed capital investor, FMR Capital, purchased 125,000 shares at $37.99 per share on June 4, contributing $4.7 million to the trust.
Meanwhile, BlackRock previously reported $10 million in seed funding for its ETF.
Mentioned in this article
Ethereum 
Bitcoin 
Franklin Templeton 
VanEck 
BlackRock 
21shares 
Fidelity Investments 
Bitwise 
Grayscale Investments 
Grayscale Bitcoin Trust Author 
Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Bitcoin
$98,486.05
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Franklin Templeton
Franklin Resources, Inc., commonly known as Franklin Templeton, stands as an American multinational holding company rooted in the world of finance.
VanEck
VanEck is a global investment manager with offices around the world, including New York, Australia, China, Germany, Netherlands and Switzerland.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
21shares
21Shares is a Swiss provider of crypto- currency exchange-traded products (ETPs).
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.