Spot Ethereum ETF issuers have made final revisions to their Form S-1 filings. In them, counterparties disclosed the amount of commissions for managing funds, noted Bloomberg Intelligence analyst James Seyffart.
The changes were made, in particular, by the following counterparties: BlackRock, Fidelity, 21Shares, Grayscale Investments, Bitwise, VanEck, Franklin Templeton and Invesco Galaxy. According to Seyffart, only ProShares did not send the papers.
The main changes in the applications relate to fees for managing funds. As with spot Bitcoin ETFs, some counterparties have stated that they will not charge fees initially.
These include the following organizations:
- Franklin Templeton;
- VanEck;
- Bitwise;
- 21Shares;
- Fidelity.
Later, after reaching a certain amount of capital under management (AUM) or after a specified time, the commission rate in the funds of these firms will be from 0.19% to 0.25%, Seyffart noted.
BlackRock plans to charge investors 0.12% initially and 0.25% going forward. Grayscale Investments stated similar conditions for its Ethereum Mini Trust product.
Invesco Galaxy abandoned the idea of preferential terms. The company plans to charge 0.25% on an ongoing basis.
Separately, it should be noted Grayscale Ethereum Trust, the company submitted an application for conversion back in October 2023. According to new data in the organization's application, it plans to set the commission at 2.5%.
“I don’t know what Grayscale was thinking. It seems that they had a sound idea, but they stumbled somewhere along the way. Investors selling shares of the main fund are unlikely to be favorable to the new product [Ethereum Mini Trust] after they were charged a commission ten times higher than the others, thereby forcing them to take profits,” said a crypto expert and financial lawyer Scott Johnsson.
Let us recall that earlier experts have repeatedly pointed out that the high commission was one of the main reasons for the significant outflow of funds from the converted Grayscale Bitcoin Trust. At the same time, former CEO of Grayscale Investments Michael Sonnenshein responded that the company does not plan to reduce the rate.
