Ethereum ($ETH) is currently trading at $3,488.76. Once the Spot Ether ETF receives final approval from the US Securities and Exchange Commission, the price is anticipated to increase. This means it will be available for 401(k) and IRA investors who may have avoided crypto investments. Needless to say, it will mark significant inflows into the ecosystem while also boosting its adoption and recognition in the market.
However, it becomes imperative to know which Ethereum ETF to go for. Every crypto investment product allocates funds to the respective digital asset. What sets them apart is the fees they charge. Issuers may also follow investment objectives that propose a different rate of return. The key focus is on the fees, as this is what ideally brings traders and investors on board at the outset or at least encourages them to consider which crypto ETF to go for.
Eight Spot Ether ETF issuers have filed final approvals with the Commission. These include Franklin Ethereum Trust, VanEck Ethereum Trust, and Bitwise Ethereum ETF.
Per the recent update, it is Franklin Ethereum Trust (EZET) which has the lowest fee of 0.19%, as mentioned on its registration form. The waiver will remain in effect until January 31, 2025, or until the first $10 billion in fund assets is reached, whichever occurs first. The VanEck Ethereum Trust (ETHV) has stated a fee of 0.20%, waived for the first 12 months or the first $1.5 billion in fund assets, whichever occurs first.
Bitwise Ethereum ETF (ETHW) and 21SharesCore Ethereum ETF (CETH) share a common policy of waiving their fees for the first six months of trading or the first $500 million in fund assets, whichever occurs first. The key difference is in fees, with ETHW committing to charge 0.20% and CETH quoting 0.21% in their respective registration forms.
The remaining issuers have the same fee of 0.25%. This includes Fidelity Ethereum Fund (FETH), iShares Ethereum Trust (ETHA), Grayscale Ethereum Mini Trust (ETH), and Invesco Galaxy Ethereum ETH (QETH). Interestingly, only QETH has not issued a promotional note about waiving its fee for Ether ETF. Every other issuer has come up with a note exempting the fee for the first 6–12 months.
Spot Ether ETF issuers are likely to follow the Spot Bitcoin ETF’s trend. They discussed their fees with the SEC ahead of Bitcoin’s ETF approval but revised them in later registration amendments. The objective was to undercut their competitor from every possible corner. Simply put, Spot Ether ETF issuers could do the same and bring down their fees or, at the most, match the fees of their closest competitor as the approval approaches.
Speculations suggest that the Ether ETFs will outperform the Bitcoin ETFs, or at least match their performance, in the first 18 months.
