Just as it was the case with BTC ETFs before they were launched in the US market, those proposed for ETH, are beginning to show competitive commission rates.
The issuers of the Invesco Galaxy Ethereum ETF yesterday set their fee at 0.25% . It should be noted that this fee acts as compensation to the fund for the services provided.
The move comes a week after Bitwise announced it would not charge a fee on the first $500 million it raises in its ETF, without specifying what the cost would be after that.
In this way, the commission defined by the Invesco Galaxy ETF is close to those presented weeks ago by two other Ethereum ETF. These are VanEck, which established a fee of 0.20% and Franklin Templeton, which stands out for having the lowest fee at the moment, 0.19%.
Exchange-traded fund analyst Eric Balchunas then commented that the fees add a touch of pressure on BlackRock to stay below 0.30% at least. “So far, it looks like ETH will have fees as low or even lower than BTC,” he noted.
As seen below, Bitcoin ETFs were launched in the US market in January 2024 with fees ranging up to 1.5% . Although it is worth mentioning that, to attract investors, several offered a 0% commission for the first six months or until reaching inflows of more than USD 1 billion.
Bitcoin ETF commission rates. Source: James Seyffart.
The Bitcoin ETF with the highest fee at launch was Grayscale’s, which has since become the one with the most outflows. Unlike the others that were just beginning to be traded, this instrument previously operated off-exchange.
In contrast, the one that offered the lowest fee for the longest period (0.12% for 12 months) was the one that attracted the most capital inflows, becoming the largest bitcoin ETF globally. This is BlackRock’s, a company that also stands out for being the one that manages the most assets in the world, which may have favored its traction.
The performance of these instruments may be factors that encourage competitive fees among Ethereum ETFs to better position themselves in the market.
4 Ethereum ETFs have yet to disclose their fees
So far, Ethereum ETFs from BlackRock, Fidelity, 21Shares and Grayscale have not disclosed the fees they will have. According to Balchunas, the reason for this is that the SEC, the securities regulator, clarified to the managers that it does not yet require this information. “They will soon provide guidance to the issuers along with the game plan,” he said .
Although there is no set date for the launch of these instruments at the moment, Balchunas estimates that it will be on July 18 .
Meanwhile, the price of ether is mostly in a lateral phase, just like bitcoin has been for the past four months.
