Grayscale to Have Lowest Ethereum ETF Fee in Major Reversal

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As a seasoned financial analyst with extensive experience in the cryptocurrency space, I believe Grayscale’s decision to introduce a very low fee for its mini Ethereum ETF is a strategic move that positions them as a leader in the Ethereum ETF race.

Grayscale, a prominent cryptocurrency asset manager, recently announced a reduced fee of only 0.15% ( fifteen basis points) for its smaller Ethereum Exchange-Traded Fund (ETF).

With this development, Grayscale’s Ethereum trust will boast the minimum expense ratio among all ETFS in the market. To give you an idea, BlackRock’s iShares Ethereum Trust charges a fee of 0.25%.

The U.S. Securities and Exchange Commission recently approved the small ETF of the asset manager. This fund is projected to debut in the market, coinciding with the launch of similar offerings, towards the end of this month.

According to U.Today’s report, it is anticipated that Ethereum ETFs will be introduced on July 23 following a prolonged period of expectation.

“Grayscale wised up” 

Yesterday, as I had anticipated, Grayscale made a move. Finance lawyer Scott Johnsson expressed this sentiment by stating, “I had predicted this development yesterday. Grayscale has become wiser.”

Some analysts believe that it will now take a leadership position in the Ethereum ETF race. 

Nate Geraci, president of the ETF Store, suggested seizing the opportunity by assuming a pioneering role in the competitive landscape for crypto ETFs in the market.

Important to mention, the Ethereum ETF from Grayscale comes with a management fee of 2.5%. According to Apollo CEO Julian Fahrer’s projection, this comparatively high charge could lead to substantial investor withdrawals.

As an analyst, I would rephrase that statement as follows: The substantial withdrawals from Grayscale’s GBTC had a significant bearing on Bitcoin‘s price trend, acting as a powerful headwind and contributing to the cryptocurrency’s bearish sentiment.

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2024-07-19 09:39