The post Grayscale Shakes Up Ethereum ETF Market with $2 Billion Fee Waiver, Outshining BlackRock appeared first on Coinpedia Fintech News
The competition among spot Ethereum ETFs is heating up, with major asset management firms revealing their fee structures. Grayscale has made a bold move by announcing a fee waiver for its Ethereum mini-trust, setting the stage for a competitive race as the July 23 launch deadline approaches.
Grayscale Smart Fee Waiver Move
Grayscale has surprised the market by waiving fees for up to $2 billion in inflows or six months, whichever comes first, for its Ethereum mini-trust. This strategic shift comes as the firm initially set a high fee of 2.5% for its main Ethereum ETF, significantly higher than its competitors.
Lowered to 15 bps, with full waiver for first $2 bn. This is what I was expecting yesterday. Grayscale wised up. https://t.co/Y0sXyTS0JT pic.twitter.com/nyuuDuTUxq
— Scott Johnsson (@SGJohnsson) July 18, 2024
The Grayscale Ethereum Mini Trust will now charge only 0.15%, the lowest among all issuers, and will waive this fee entirely for a specified period, making it the most cost-effective option currently available.
Grayscale Receives Praise
Grayscale’s bold move has earned praise from industry experts. Nate Geraci, President of ETF Store, commended the firm, stating, “Bravo, Grayscale… This is how you go for the jugular.” Geraci highlighted that Grayscale, which has set regulatory standards for spot Bitcoin and Ethereum ETFs, is now leading the market with competitive fees.
BlackRock’s Continuing It’s OLD Strategy
Grayscale is not the only firm implementing a fee waiver strategy. BlackRock has announced a potential fee reduction to 0.12% during the initial launch period of its ETHA ETF, which will last for 12 months or until the ETF accumulates $2.5 billion in net assets.
This approach mirrors the successful strategy used for BlackRock’s IBIT Bitcoin ETF, which has amassed nearly $20 billion in assets under management in just seven months.
