Breaking: 21Shares Files Updated Spot Ethereum ETF S-1, Reveals Sponsor Fee

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As a seasoned researcher with extensive experience in following the cryptocurrency market and ETF developments, I find 21Shares’ recent filing of an updated S-1 for its Spot Ethereum ETF to be an intriguing move. The disclosure of a competitive sponsor fee of 0.21% aligns with market expectations, set by VanEck’s precedent.

Twenty-One Shares has submitted an amended S-1 form for its proposed Ethereum ETF, disclosing essential information regarding the Trust’s functioning and costs. The document unveiled the sponsor fee that will be levied upon the ETF’s commencement of trading. Furthermore, it provided insights into a six-month fee exemption.

21Shares Submits Updated S-1 For Spot Ethereum ETF

Based on the filing, the 21Shares Core Ethereum Trust (CETH) is set to pay a sponsor fee amounting to 0.21% of its Ethereum (ETH) assets. This fee is consistent with industry anticipations, as VanEck’s 0.20% charge had previously fueled assumptions of reduced fees among the eight competing trusts.

As a seasoned investor with a deep understanding of the ETF market and Ethereum’s growing potential, I find ProShare’s proposal to be quite intriguing. By waiving the sponsor fee for six months following the Ethereum ETF’s listing on exchanges, they are essentially reducing operational costs during the Trust’s initial growth phase. This strategy is a clever way to attract investors who may be hesitant due to the high fees often associated with new ETFs.

Previously, Bitwise had waived comparable fees, but the company has yet to unveil the exact sponsor fees. Meanwhile, Invesco Galaxy revealed a 0.25% fee in a filing from July 9. Consequently, 21Shares’ recent disclosure positions it as having the second most affordable fee for Spot Ethereum ETFs.

Additionally, the revised S-1 submission from 21Shares emphasizes their forward-thinking strategy in designing their ETF to attract crypto market investors. Furthermore, this update aligns with the anticipated launch date for the Ethereum ETF, scheduled for July 23. Previously, Bloomberg announced that July 17 would be the final day for S-1 amendments, and 21Shares’ filing confirms this prediction.

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2024-07-17 18:02