Ethereum (ETH) Spot ETF Fees: Which Provider Is Cheapest Amid Bidding War Between Ark, VanEck, 21Shares, Others
Spot Ethereum ETF funds have finalized their management fees for tomorrow's launch. (Photo by Spencer Platt/Getty Images)
- Grayscale will launch a “mini fund” with 0.15% fees alongside its main Spot Ethereum ETF, which carries 2.5% fees.
- Five out of nine funds have post-waiver fees of 0.21% or lower.
- Ethereum ETFs could push the price of ETH above $5,000 within the first 18 months.
U.S. Spot Ethereum (ETH) exchange-traded funds (ETFs) are expected to launch on Tuesday, July 23, and could attract billions from institutional investors in the following months.
With nine ETH ETF issuers now confirmed, it looks as though funds have learned from their experience with Spot Bitcoin (BTC) ETFs and are going to war with management fees.
Ethereum ETF Fees
List of the confirmed funds and their fee structures as per Bloomberg’s Terminal .
| Name (Ticker) | Starting Fee | Waiver Duration | Post-Waiver Fee |
|---|---|---|---|
| Grayscale Ethereum Trust (ETHE) | 2.5% | N/A | 2.5% |
| Grayscale Ethereum Mini Trust (ETH) | 0.0% | Six months or first $2 billion of assets. | 0.15% |
| Franklin Ethereum ETF (EZET) | 0.0% | Until 01/31/25 or the first $10 billion of assets. | 0.19% |
| VanEck Ethereum ETF (ETHV) | 0.0% | One year or after the first $1.5 billion of assets. | 0.20% |
| Bitwise Ethereum ETF (ETHW) | 0.0% | Six months or after the first $0.5 billion of assets. | 0.20% |
| 21 Shares Core Ethereum ETF (CETH) | 0.0% | Six months or after the first $0.5 billion of assets. | 0.21% |
| Fidelity Ethereum Fund (FETH) | 0.0% | Until 12/31/24 with no limit on assets. | 0.25% |
| iShares Ethereum Trust (ETHA) | 0.12% | Twelve months or after the first $2.5 billion of assets. | 0.25% |
| Invesco Galaxy Ethereum ETF (QETH) | 0.25% | N/A | 0.25% |
U.S. Spot ETH ETF issuers have finalized their applications and revealed tight management fees, highlighting fierce competition.
Grayscale’s bid for the lowest fees within its mini fund is perhaps the standout offering from the crowd and has garnered praise from the likes of ETF Store president Nate Geraci.
Interestingly, this makes Grayscale’s mini-fund extremely competitive from a fee perspective, and it could prevent the consistently high outflows seen with the Grayscale Bitcoin Trust (GBTC).
Grayscale’s “Mini Fund”
Upon converting the $9.2 billion ETHE fund into a Spot ETF, Grayscale’s primary fund will retain a 2.5% fee, as seen with GBTC. This decision is expected to cause significant outflows from ETHE, just as it did with GBTC, which has seen over $18 billion exit since launching in January.
Though Grayscale has planned and applied for a spin-off “mini” fund for GBTC, which is expected to carry a management fee of 0.25%, it has yet to launch. However, it seems as though the firm intends to launch the Grayscale Ethereum Mini Trust alongside ETHE.
Fascinatingly, the mini Ethereum ETF will carry a 0% fee for the first six months – or the first $2 billion, after which the fee will be 0.15%, the lowest of any issuer. As noted by crypto researcher Noelle Acheson, the mini fund will be seeded with approximately $1 billion from ETHE, meaning it will already be halfway to its fee release waiver upon launch.
Perhaps most attractive to investors are the rumors that the ETHE to ETH fund conversion will be tax-free. However, it remains yet to be seen how this decision will affect inflow/outflow rates.
ETH Price Movement
ETH could be on track to reach a new all-time high (ATH) following the launch of the first U.S. Spot Ethereum ETFs on Tuesday, July 23. Though some see a reasonable push above $5,000 within months of their launch, some of the more bullish analysts anticipate its price to surge above $20,000 “soon.”
The $3,500 price remains a formidable resistance zone, and some technical analysis suggests that the price of ETH needs to drop a little more before it can rally to an ATH.
The price of ETH could undergo a sell-the-news event following the launch of ETH ETFs, and ETF outflows will place downward pressure on the market. Similarly to how the market moved when spot BTC ETFs were approved, there could be a brief jump in price.
There is also reason to believe that ETH ETFs will be huge catalysts for an altcoin bull market. Though this could spread beyond the Ethereum ecosystem, it’s presumed that Ethereum ecosystem tokens will rally alongside ETH.
Comparing ETH and BTC ETF Fees
Among the Bitcoin ETFs, Grayscale Bitcoin Trust (GBTC) stands out with the highest management fee at 1.50%, managing assets worth $18.29 billion at press time. In stark contrast, the Franklin Bitcoin ETF (EZBC) offers the lowest fee at 0.19%, with an AUM of $396 million.
At press time, BlackRock’s iShares Bitcoin Trust stood as the front-runner in terms of market share, boasting nearly $21.97 billion. Here’s the full list of fees BTC ETF charges providers:
| Name (Ticker) | Fees | AUM |
|---|---|---|
| Grayscale Bitcoin Trust (GBTC) | 1.50% | $18.29B |
| iShares Bitcoin Trust (IBIT) | 0.25% | $21.97B |
| Wise Origin Bitcoin Trust (FBTC) | 0.25% | $12.14B |
| VanEck Bitcoin Trust (HODL) | 0.25% | $778.3M |
| Valkyrie Bitcoin Fund (BRRR) | 0.25% | $524.71M |
| Invesco Galaxy Bitcoin ETF (BTCO) | 0.25% | $344.82M |
| WisdomTree Bitcoin Trust (BTCW) | 0.25% | $72.56M |
| Ark/21 Shares Bitcoin Trust (ARKB) | 0.21% | $2.65B |
| Bitwise Bitcoin ETP (BITB) | $0.20 | $2.2B |
| Franklin Bitcoin ETF (EZBC) | $0.19 | $396M |
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