According to Bloomberg, the competition for potential Ether ETF assets is intensifying even before the funds have officially launched. Major issuers such as BlackRock, Fidelity, Invesco, and Bitwise have submitted paperwork to the Securities and Exchange Commission (SEC) detailing the fees they plan to charge for their respective Ether ETFs, which will directly hold the second-largest cryptocurrency. These filings come in anticipation of the funds potentially debuting as early as next week, pending final approval from the regulator.
The proposed fees for these Ether ETFs vary significantly. Franklin has suggested a fee as low as 0.19%, while Grayscale is looking to convert an existing fund into an Ether ETF with a fee of 2.5%. Grayscale is also considering launching another version with a lower expense ratio. Bloomberg Intelligence analyst Seyffart noted that seven out of the ten ETFs set to launch are offering fee waivers, with some waiving fees entirely for periods ranging from six to ten months. Seyffart also mentioned that many of the issuers involved in the Ether ETF race have previously gone through a similar process with their Bitcoin funds, which launched earlier this year.
The Bitcoin ETFs debuted to significant attention in January and have collectively attracted $16.5 billion in net flows, according to data compiled by Bloomberg. BlackRock’s Bitcoin ETF, trading under the ticker IBIT, has been particularly successful, currently holding around $21 billion in assets. The experience with Bitcoin ETFs suggests that the upcoming Ether ETFs could also see substantial investor interest and capital inflows once they receive the final regulatory green light.