The ethereum ETF is expected to be launched as early as next week, and many large financial institutions in the USA are vying for the first launch and competing for this market. Blackrock, Fidelity and others are planning to reduce the fees of ethereum ETF, ranging from a minimum charge of 0.19% to 2.5%.
Although the relevant funds have not yet been officially launched, the battle for the Ethereum ETF market has quietly begun. BlackRock and other Wall Street institutions are competing to reduce the fees for Ethereum ETFs.
On July 17, several fund issuers including BlackRock, Fidelity, Invesco, and Bitwise submitted application documents to the U.S. Securities and Exchange Commission (SEC), detailing the fee standards they have set for the upcoming Ethereum ETF.
These ETFs will directly hold the second-largest cryptocurrency by market cap, and the companies are currently awaiting final approval from regulatory agencies. It is reported that the Ethereum ETF may begin trading on July 23.
BlackRock plans to charge a management fee of 0.25% for its unreleased Ethereum ETF, but will reduce fees for the first 12 months or for portions with cumulative assets of up to 2.5 billion USD. Fidelity also plans to charge a fee of 0.25% and will waive this fee by the end of the year, with no limit on total assets. Meanwhile, 21Shares and Bitwise, which focus on cryptocurrency, have proposed fees of 0.21% and 0.2% respectively, and provided additional favorable conditions.
Overall, proposed fees range from the lowest 0.19% proposed by Franklin Funds to 2.5% by Grayscale. Grayscale is considering converting its existing funds into an Ethereum ETF and may simultaneously launch a new version with lower fee ratios.
Analyst James Seyffart points out: "Of the 10 ETFs that are about to be launched, 7 offer fee reductions, some even entirely waiving fees, with durations ranging from 6 to 10 months. This precisely illustrates how fierce the competition these issuers are expecting - it will be a battle to raise assets."
Seyffart also added that many fund issuers participating in the Ethereum ETF market experienced similar competition in Bitcoin ETFs launched earlier this year. Data shows that since they went public in January, these ETFs have attracted a total of $16.5 billion in inflows. BlackRock's Bitcoin ETF (IBIT) has been particularly outstanding, currently managing assets of around $21 billion.
According to media reports, US regulators have informed at least three companies applying to launch exchange-traded funds (ETFs) linked to the price of Ethereum that they may eventually approve the new product for launch on next Tuesday (July 23rd). Analysts expect the Ethereum ETF to attract new inflows of up to $10 billion.
Several large financial institutions are vying for the approval and launch of the Ethereum ETF, including BlackRock, Grayscale, and Fidelity. To meet regulatory requirements, issuers such as ARK Investments and Fidelity have recently removed the pledge function from their Ethereum ETF plans.
Since the beginning of the year, Ethereum has risen nearly 46% to its current price of $3,434.81.
