Ether ETF Fee Race Begins as Invesco Reveals 0.25% Charge, Slightly Higher Than VanEck
Asset manager VanEck previously disclosed that it would charge a 0.20% management fee for its fund.
Jul 9, 2024 at 2:49 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/SEDV4L73ARBU5FTG642KDGNXSY)
Asset managers Invesco and Galaxy will charge investors a 0.25% management fee on its proposed spot ether (ETH) exchange-traded fund (ETF) if and when it is rolled out.
This is just slightly higher than VanEck’s 0.20%, which was disclosed last month.
With eight issuers looking to launch an ether ETF at the same time, fees will play a critical role in differentiating a product from the others and appealing to investors. Grayscale’s higher-than-normal 1.5% fee on its bitcoin (BTC) trust caused it, among other reasons, to bleed billions of dollars while others saw mostly inflows.
Management fees are used by issuers to pay for the maintenance of a fund, such as for marketing costs, salaries and custodial services.
Most issuers for the spot bitcoin ETFs picked a fee between 0.19% and 0.30% which will likely be the case for their ether counterparts.
Read more: What ETF Approval Could Mean for Ethereum
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Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.