On July 9, asset managers Invesco and Galaxy set management fees for the Invesco Galaxy Ethereum ETF (QETH) at 0.25% in an amended filing to United States regulators. This is the latest sign of mounting competition among exchange-traded fund (ETF) sponsors ahead of the anticipated rollout of spot Ether (ETH) funds later this month.
Invesco’s fees come in slightly higher than those of rivals VanEck and Franklin Templeton, which revealed plans to charge 0.20% and 0.19%, respectively, in their own S-1 registrations. The filings are an early indication that accelerating competition among fund managers in the digital asset space is helping to drive down fees for investors.
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All three fund sponsors charge dramatically lower fees than Grayscale’s Ethereum Trust (ETHE), a closed-end fund launched in 2017 and among the few Ethereum investment vehicles currently available to U.S. investors. Grayscale plans to launch its own spot Ethereum ETF—Grayscale Ethereum Mini Trust (ETH)—soon but has not yet revealed its planned management fees.
Bitcoin (BTC) investors benefited from competition among fund managers after U.S. regulators greenlighted the listing of BTC ETFs in January. Around half of the nearly dozen BTC ETFs on the market have slashed management fees or temporarily waived them entirely in a bid to draw investor fund flows away from rivals.
None of the S-1 registrations filed so far include a specific start date for listings, but industry analysts expect that spot ETH ETFs could begin trading as soon as this month. The registration filings are the latest in a wave of applications by fund managers for publicly traded crypto investment vehicles.
On Jan. 8, the Chicago Board Options Exchange (CBOE) filed applications to list VanEck and 21Shares’ proposed spot Solana (SOL) ETFs on its exchange platform. U.S. regulators are expected to make a final decision on those funds around March 2025.
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So far, none of the proposed spot crypto ETFs feature staking. Resistance from the U.S. Securities and Exchange Commission prompted several top fund sponsors—including Ark Investments Management and Fidelity Investments—to drop staking plans from their proposed spot ETH ETFs.
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