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Highlights
- VanEck will charge zero fees until the AUM reaches $1.5 billion or late 2025, whichever is earlier.
- VanEck head of digital assets said spot Ether ETF launch will generate renewed interest in Ethereum.
- Other Ether ETF issuers are awaiting BlackRock's call before making the move.
Soon after VanEck filed Form-8A for its spot Ethereum ETF on Tuesday, June 25, another filing suggested that it would completely waive the ETF fees for an unspecified time till 2025, or until the assets hit $1.5 billion, whichever comes earlier. With analysts expecting July 2 as the launch date for the Ethereum ETFs, issuers like VanEck are already raising the competition bar.
VanEck Eyes Leadership for Spot Ethereum ETFs
In a recent email to ETF publication, Matthew Sigel, head of digital assets at VanEck outlined the firm’s strategic approach to crypto ETFs. He said that VanEck “aims to be a leader on crypto ETF fees even if it means we lose money at the outset.”
He further added that the plan is “to make it up on volume; in this case, decentralized finance volume”. Sigel said that if the Ether ETFs manage to spark a renewed interest in Ethereum, it would boost the network activity, ultimately driving the Ethereum price higher.
Also Read: ETH Price Reversal Soon As Ethereum ETF Coming In Two Weeks
Additionally, Sigel stated that VanEck is also exploring investments in Ethereum-based DeFi projects such as Aave and Curve, highlighting the firm’s greater interest in the decentralized finance (DeFi) sector.
VanEck Triggers A Fee War
Currently, VanEck and Franklin Templeton are the only prospective issuers who have declared the fees for the Ether ETFs. Previously, Franklin stated that it would charge a 0.19% fee for its spot Ethereum ETF.
Bloomberg Intelligence ETF analyst Eric Balchunas said that issuers usually don’t disclose their fee structure until the very last of the launch period. Moreover, he said that firms are awaiting BlackRock’s call before making a move.
“What BlackRock is going to charge is prob the single most imp missing variable outside of exact launch date. Their fee is the sun that the rest will need to orbit around. Must be nice,” he said.
The removal of the Ethereum staking feature from the spot Ethereum ETFs would be a crucial factor in deciding on the ETF fees. With direct investments in Ether, investors can earn an additional 3% yield by staking their ETH. Thus, ETF issuers will have to go the extra mile to attract investors to invest in Ethereum ETFs.
In a major update, SEC Chair Gary Gensler said that the progress on spot Ethereum ETFs is very smooth for the moment.
Also Read: Spot Bitcoin ETFs Vs. Spot Ethereum ETFs: Which Is The Better Buy?
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