Major player in the ETF industry, VanEck, announced fee waivers for its upcoming spot Ethereum ETF. This follows their policy for the Bitcoin ETF introduced earlier this year.
Matthew Sigel, VanEck’s head of digital assets research, highlighted that this fee waiver is part of their goal to become the leading provider of cryptocurrency ETFs. He remarked, “We aim to be a leader on cryptocurrency ETF fees even if it means we lose money at the outset.”
Sigel is optimistic that this strategy will attract a wide range of investors and increase interest in Ethereum as an investment asset. Lowering the entry barrier for new investors is also a key reason for this fee waiver.
In addition to the fee announcement, VanEck filed an 8-A securities registration form with the SEC on June 25th. Bloomberg ETF analyst Eric Balchunas viewed this filing as standard but saw it as a positive sign for an expected debut date of July 2nd.
Sigel emphasized VanEck’s strong belief in Ethereum’s future. They expect to benefit from price increases as on-chain activity grows. This optimism is part of their plan to potentially offset initial losses from waiving fees.
VanEck’s fee structure plans were detailed in an S-1 amendment on June 22nd. They plan to waive fees on the first $1.5 billion in assets until 2025. After that, a 0.20% sponsor fee will be charged. For comparison, Franklin Templeton, another spot ETH ETF provider, announced a 0.19% sponsor fee with a six-month waiver for $10 billion.
Current Bitcoin ETF fees range from 0.19% to 0.39%. VanEck’s aggressive fee plan for its Ethereum ETF could set a new standard in the market. Eric Balchunas expects that BlackRock’s upcoming ETH ETF fee structure will significantly influence industry decisions.
By waiving fees, VanEck aims to make its Ethereum ETF more attractive to investors. This move shows their commitment to becoming a major player in the cryptocurrency ETF market. The industry will be watching closely to see how this strategy impacts the market and investor interest.
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