BlackRock sets 0.25% fee in latest round of amended forms as firms gear up to launch spot Ethereum ETFs

Asset management giant BlackRock set its fee at 0.25% for its spot Ethereum product as firms file amended forms ahead of an expected launch date next week.

BlackRock said it could "waive all or a portion" of the fee for certain periods of time, according to an amended S-1 registration statement filed on Wednesday. The firm also said it would wave a portion of the fee, bringing it down to 0.12% for a year after listing and for the first $2.5 billion in assets.

"The Sponsor’s Fee is accrued daily at an annualized rate equal to 0.25% of the net asset value of the Trust and is payable at least quarterly in arrears in U.S. dollars or in-kind or any combination thereof," the firm said in its amended form. "The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s Fee for stated periods of time."

ETF issuer 21Shares set a 0.21% fee, which will be waived for six months starting on the day the shares are listed or during the first $500 million, whichever comes first, according to its amended S-1 registration statement filed on Wednesday.

Bitwise also announced its fee on Wednesday and set it at 0.20%, according to its amended filing. The firm previously said it would waive the sponsor fee for the first six months on the first $500 million in assets. 

Grayscale also sets its fee for the Grayscale Ethereum Trust at 2.5%, significantly higher than the other issuers. Ten percent of Grayscale's spot Ethereum ETF will establish its Ethereum mini trust, providing $1 billion in seed funding.

Invesco Galaxy's fee was 0.25%, VanEck's was 0.20% and Franklin Templeton set a 0.19% fee. Fidelity also set its fee at 0.25% on Wednesday but said it would waive it through the end of 2024.  Franklin Templeton said it will waive its fee until Jan. 31, 2025 on the first $10 billion of the fund's assets. VanEck said it will waive its fee for a year after the fund is listed on the exchange for the first $1.5 billion. 

Multiple sources have said spot Ethereum ETFs will likely begin trading on July 23.

"Hearing SEC finally gotten back to issuers today, asking them to return final S-1s on Wed (incl fees)," Senior Bloomberg ETF analyst Eric Balchunas posted on X Monday. "And then request effectiveness on Monday after close for a Tuesday 7/23 launch."

Firms have been working to get the U.S. Securities and Exchange Commission's sign-off on their Ethereum products, and they seem to be quickly approaching the finish line. This comes after the SEC approved 19b-4 forms for eight spot Ethereum ETFs on May 23, and issuers would need their registration statements to become effective before launching.

The SEC just approved 19b-4 forms for the Grayscale Ethereum Mini Trust and the ProShares Ethereum ETF on Wednesday. Registration statements for those would still need to go effective.

“Grayscale is excited to share that the U.S. Securities and Exchange Commission (SEC) has approved Grayscale Ethereum Mini Trust’s (proposed ticker: ETH) Form 19b-4," a Grayscale spokesperson said in a statement. "The Grayscale team continues to engage constructively with SEC staff, as we seek full regulatory approval for US spot Ethereum ETPs, and we will share more information, as appropriate.” 

Staking?

The SEC approved those vital forms for spot Ethereum ETFs, notably not including staking. The agency has had an issue with staking services.

Republican SEC Commissioner Hester Peirce told Coinage's Zach Guzmán in an interview posted Wednesday that she could see "something like staking, or any feature of the product," are "always open for reconsideration."

Balchunas said it's possible to have staking and in-kind creation if there is a change in the presidential administration.

"Hester Peirce saying what we thought but nice to hear it directly: both staking and in-kind creation/redemption for etc/btc ETFs are 'open for reconsideration' (if there's a change at POTUS obv," Balchunas posted on X.

Variant Chief Legal Officer Jake Chervinsky said it's a when, not if, for the possibility of staking in spot Ethereum ETFs.

"There's no good reason why the SEC should prevent ETH ETFs from staking," Chervinsky said on X. Staked ETH isn't a security, and investors can fully understand the risk of a staked product + decide for themselves if they want to take that risk. It'll take a while, but this is 'when,' not 'if,' imo."

Updated at 9:40 p.m. UTC time on July 17 with details about Grayscale throughout

Updated at 10:05 p.m. UTC on July 17 to add details about waiving fees throughout