Spot Ethereum ETF Launch Update

Nine spot Ethereum ETFs are set to begin trading on Tuesday. According to the S-1 filings, except ETHE (Grayscale) and QETH (Invesco), all issuers have fee waivers during the initial phase with diverse conditions regarding waiver periods and waiver amounts. Most ETF issuers will charge between 0.19% and 0.25% management fees after the waiver period, with the exception of Grayscale funds.

Grayscale Ethereum Trust (ETHE), currently managing 2.92 million ETH (approximately $10 billion), will charge a 2.5% fee post-conversion without any initial waivers. This fee is higher than any of its competitors and the 1.5% fee currently charged by GBTC. Similar to the pattern observed after the launch of spot BTC ETFs when many GBTC holders moved to other ETFs, many ETHE holders may opt to switch to other ETFs with lower fees.