VanEck Announces Zero Fee for Spot Ethereum ETF Ahead of July 2 Launch

According to the head of digital assets at VanEck, launching the spot Ether ETF would rekindle people’s curiosity in this market. But for now, let’s wait for BlackRock. The rest of us have eyes only for how they respond to our next move.

HIGHLIGHTS

• VanEck is set to charge zero fees until the AUM reaches $1.5 billion or late 2025 as appropriate.
• According to the head of digital assets at VanEck, a spot Ether ETF launch will create interest in Ethereum.
• They are waiting for BlackRock’s signal before other Ether ETF issuers make their move.

A day after VanEck submitted Form-8A for its spot Ethereum ETF on Tuesday, June 25, another filing hinted that it would entirely remove the ETF fees for some indefinite time before 2025 or when the assets reach $1.5 billion. The Ethereum ETFs are expected by analysts to be launched on July 2, with companies such as VanEck setting new records.

VanEck Sets Sights on Dominating Spot-based Ethereum ETFs

Matthew Sigel, who is the head of digital assets at VanEck, sketched out how they take on crypto ETFs in an email sent recently to ETF.com. He said that even if we lose money in the beginning, “VanEck seeks to position itself as an industry leader in terms of cryptocurrency trading costs.”

Moreover, he added that the plan is “to make it up on volume; in this case, decentralized finance volume.” He also mentioned that if those Ether ETFs are successful at reigniting interest in Ethereum, then the network activity would increase thus pushing the Ethereum price higher.

Also, Sigel has mentioned that VanEck has been mulling over a number of investments in DeFi-based projects such as Aave and Curve tokens. This implies that it is more interested in the Decentralized Finance (DeFi) sector.

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VanEck Sparks a Fee War

Currently, VanEck and Franklin Templeton are the only prospective issuers who have declared the fees for the Ether ETFs. Before now, Franklin stated 0.19% fee for its spot Ethereum ETF.

Bloomberg Intelligence ETF analyst Eric Balchunas said issuers don’t reveal their costs until right before launch most times. Furthermore, he argued that other companies were awaiting BlackRock’s move first.

He stated: “What BlackRock is going to charge is probably the single most imprecise variable outside of exact launch date. Their fee is the sun that the rest will need to orbit around. It must be nice.”

The absence of Ethereum staking affects Ethereum ETF fees significantly. In case of direct investments in Ether, investors can stake their ETH, earning an additional 3% yield. Therefore, ETF issuers have to do more to attract people to invest in Ethereum ETFs.

The progress on spot Ethereum ETFs for now looks smooth, according to SEC Chair Gary Gensler in a major update.