Breaking: Invesco Galaxy Reveals Fee For Spot Ethereum ETF In S-1 Amendment 🚨📌
Significant details in its amended S-1 filing for a Spot Ethereum ETF. This marks a crucial step in the competitive landscape of crypto exchange-traded funds. The latest move comes amidst a flurry of filings by other major players in the industry, including BlackRock, Bitwise, Fidelity, VanEck, Grayscale, 21Shares, and Franklin Templeton, who have all submitted their amendments to the United States Securities and Exchange Commission (SEC).
Invesco Galaxy Reveals Sponsor Fee For Spot Ethereum ETF
Despite missing the initial July 8 deadline, Invesco Galaxy submitted its amendment on the morning of July 9, as anticipated by industry watchers. The S-1 filing outlines the financial structure of the ETF. Moreover, it emphasized a unified sponsor fee of 0.25% per annum for its QETH Ethereum ETF.
According to the S-1 amendment, “The Trust will pay the Sponsor a unified fee of 0.25% per annum (the ‘Sponsor Fee’) as compensation for services performed under .” Hence, this fee will be accrued daily and paid monthly in arrears in U.S. dollars. The administrator will calculate the fee based on the Trust’s total net assets.
Moreover, to manage the expenses, the sponsor or its delegate will instruct the execution agent to convert Ethereum held by the Trust into U.S. dollars. The filing clarifies, “The Trust is not responsible for paying any costs associated with the transfer of ether to or from the Trust in connection with paying the Sponsor Fee or in connection with creation and redemption transactions.”
Invesco Galaxy’s filing also details the scope of ordinary expenses covered by the Sponsor’s fee. These include trustee fees, fees for The Bank of New York Mellon (acting as the Administrator, Transfer Agent, and Cash Custodian), Ethereum Custodian fees, Execution Agent fees, exchange listing fees, SEC registration fees, and costs associated with printing, mailing, legal services, and audits.
