BlackRock Sets 0.25% Fees for Spot Ethereum ETF in Final Amended Forms

Jimmy Aki
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Asset management firm BlackRock has decided to set the fee for its upcoming spot Ether ETF at 0.25% ahead of a potential launch next week. This is coming at a time when other issuers are finalizing the fees in their S-1 filings.

Insights into BlackRock’s Spot Ether ETF Fee and Waiver Period

According to BlackRock’s S-1 registration statement, filed on July 17, the fee for its spot Ether ETF will be accrued daily at an annual rate that is equal to 0.25% of the fund’s net asset value.

Investors will also be given the flexibility to pay this fee at least every three months in cash (USD), in-kind, or a combination of both options.

BlackRock also stated that there is a possibility that it could waive all of the fee or at least some of it for certain periods, which it would carefully consider when it officially launches next week.

BlackRock’s spot Ether ETF will start trading at a 0.12% fee until 12 months pass or after it amasses $2.5 billion in net assets, whichever comes first. This is similar to the iShares Bitcoin Trust launched by the company.

Other Asset Managers Proposes Spot Ethereum ETF Fees

BlackRock is not the only asset manager that is proposing fees for its spot Ethereum ETF ahead of a potential SEC’s approval for listing next week. Other asset managers have also disclosed their fees to perhaps promote healthy competition after the launch of trading.

On July 17, Bitwise also announced its fee to be 0.20%. This was after the firm had said it would waive the sponsor fee on the first $500 million in assets for the first six months.

The Grayscale Ethereum Trust has been set at 2.5%, which is considerably higher than the fees of other issuers. But Franklin Templeton set the lowest spot Ethereum ETF fee at 0.19% as the firm said it will waive its fee until January 31, 2025, on the first $10 billion of the fund’s assets.

In addition, VanEck set its fee at 0.20% while stating that it will waive its fee for a year after the ETF is listed on the exchange for the first $1.5 billion.

The 21Shares Core Ethereum ETF’s fee is set at 0.21%, while Fidelity and Invesco Galaxy will offer the same 0.25% fee as BlackRock.

Earlier this week, the SEC reportedly issued “preliminary approval” to some spot Ethereum ETFs. These are BlackRock, Franklin Templeton, and VanEck. But other asset managers are also working to launch their ETFs next week.

Bloomberg ETF analyst Eric Balchunas expects the S-1 filings to be signed off next Monday after trading hours, allowing the spot Ether ETFs to officially start trading on Tuesday, July 23.

If approved, the spot Ether ETFs would be listed on the Nasdaq, New York Stock Exchange, and the Chicago Board Options Exchange.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.