According to Blockworks, a new set of revised spot ether ETF applications have been submitted, with at least one more round anticipated before the products can be launched. The most recent submissions suggest a potential fee battle and reveal that one issuer has shifted its focus more towards bitcoin. The Securities and Exchange Commission approved 19b-4 proposals filed by Cboe, NYSE Arca, and the Nasdaq to list such funds on May 23. The regulator is now finalizing S-1 registration statements, the last step before launch.
BlackRock disclosed its $10 million in seed capital and authorized participants for its fund on Wednesday. However, as more applications were submitted late Friday, one of the key revelations was the planned price point of 0.19% for Franklin Templeton’s ether fund. The $1.6 trillion asset manager was the first to disclose its proposed fee, setting the stage for an expected fee war similar to the one seen among bitcoin ETF issuers in January. Franklin Templeton had undercut Bitwise to become the cheapest bitcoin ETF a day after those funds were launched in January.
Nate Geraci, president of The ETF Store, anticipates the spot ether ETF fee war to be as intense as the one surrounding BTC funds. He added that the two battles are interconnected, as fee competition in one category will likely impact the other, as end investors will expect comparable pricing on both. Sumit Roy, a senior analyst at ETF.com, suggested that fee waivers could also play a role again. He speculated that permanent expense ratios could drop as low as 0.15%.
Another significant revelation from the filing was the absence of Ark Invest’s name. The firm, which focuses on disruptive innovation, had partnered with 21Shares to launch a spot bitcoin ETF in January. A 21Shares spokesperson confirmed the fund will continue to attempt to launch the 21Shares Core Ethereum ETF without Ark Invest as a partner. The two companies remain 'committed partners' for ARKB and a range of futures-based products.
An Ark Invest spokesperson stated that the firm views bitcoin as 'a public good that everyone should be able to access at a low cost.' Regarding Ethereum, Ark believes in its transformative potential and the long-term value of the Ethereum blockchain. However, at this time, Ark will not be moving forward with an Ethereum ETF. The representative added that they will continue evaluating efficient ways to provide their investors with exposure to this innovative technology in a way that unlocks its full benefits.
