Spot Ethereum Exchange-Traded Funds is a growing trend in the crypto industry [ETF] Into its ecosystem. VanEck has filed Form-8A recently for its Ethereum spot ETF. Many analysts have predicted that these funds would launch on July 2. VanEck, in addition to this, was also trying to keep up with the times by eliminating the ETF charges.
Matthew Nigel’s email, sent to VanEck employees, confirms that the company will not be charging any fees for the Ethereum ETF. It is unclear how long this initiative will last, but it’s likely to be until 2025. If the assets of the fund reach $1.5 Billion before that deadline, then its no-cost structure ends. After this date, the fund is charged a fee of 0.20%.
Bloomberg ETF analyst Eric Balchunas said that issuers seldom disclose their fee structures so early, before launch. VanEck wasn’t alone in doing this. Franklin Templeton announced previously that they would charge a 0.19% commission for their spot Ethereum ETF. Balchunas also spoke about this. said,
“What BlackRock is going to charge is prob the single most imp missing variable outside of the exact launch date. Their fee is the sun that the rest will need to orbit around. Must be nice.”
Also Read: Ethereum ETF Demand to be Lower Than Bitcoin, Says Bernstein
Why is VanEck Going With ‘Zero Fees?’
VanEck seems to be aware that it will lose money by launching the initiative. Sigel sent an email to ETF.com. said,
“[VanEck] aims to be a leader on crypto ETF fees even if it means we lose money at the outset. The plan is to make it up on volume; in this case, decentralized finance volume.”
ETH traded at $3.382.65 after a 5% drop over the past seven days.
Also Read: SEC Chair Gensler Says Ethereum ETF Approval is Going Smoothly
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Source: watcher.guru