Ethereum Spot ETF: Franklin Templeton Launches Fee War With 0.19% Offer
June 01 2024 - 6:00AM
NEWSBTC
Following the abrupt approval of the Ethereum Spot ETFs by the US
Securities and Exchange Commission (SEC), several prospective
issuers have now filed amended versions of their S-1 forms. This
development follows an initial directive from the commission that
necessitated all asset managers vying to launch an Ether Spot
ETF to submit their draft S-1 filings on Friday. Related
Reading: Ethereum Investors Take On Sky-High Leverage: Brace For
Volatile Storm? Franklin Templeton Opens Floor With 0.19% Sponsor
Fee Among the many S-1 amendments received by the SEC on Friday,
Top asset management firm Franklin Templeton caught many
spectators’ attention after becoming the first potential issuer of
the Ethereum Spot ETF to reveal a sponsor fee. The New
York-based investment firm aims to charge a 0.19% fee on its Ether
spot ETF if approved. Therefore, for every $1,000 invested in this
fund, investors would need to pay $1.90 directed at covering the
management and operational expenses with the ETF. In any ETF
market, sponsor fees are important factors that serve as incentives
in attracting investments. With Franklin Templeton being the first
issuer to reveal its sponsor fee, it may serve as a precedent as
other asset managers may set figures around this value in a bid to
entice investors. Notably, Franklin Templeton also offers the
same sponsor fee for its Bitcoin spot ETF which ranks as one of the
lowest fees in the specific ETF market. Alongside them, other
issuers including VanEcK, Invesco Galaxy, Grayscale, BlackRock, and
21Shares have also turned in their amended S-1 forms to the SEC.
While the 19b-4 forms of these ETF applications were approved on
May 23, the processing of the S-1 forms remains critical for any
form of trading to commence. Notably, this process may be lengthy
as the submitted S-1 forms are subject to comments from the
Commission, which will likely necessitate further amendments.
Related Reading: Crypto Analyst Reveals Why $69,000 Is Very
Important In The Grand Scheme Of A Bitcoin Recovery JPMorgan
Predicts Lower Demand For Ethereum Spot ETFs In other news,
prominent investment bank JPMorgan has projected the Ethereum spot
ETFs to perform far less than their Bitcoin counterparts. According
to multiple reports, JPMorgan analysts predict these ETFs can only
attract investments of about $3 billion in 2024, which could rise
to $6 billion if staking is introduced. For context, the
Bitcoin spot ETFs launched in January are currently valued at
$13.69 billion according to data from SoSoValue. In a recent
interview, Bloomberg analyst James Seyffart shared similar
sentiments with JPMorgan, highlighting the massive difference in
the market cap of Ethereum and Bitcoin. At the time of writing,
Ethereum trades at $3.777 with a slight gain of 0.45% in the last
24 hours. In tandem, the asset’s daily trading volume is up by
4.80% and valued at $15.40 billion. Featured image created with
DALL·E, chart from Tradingview
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