Breaking: Invesco Galaxy Discloses Fee For Spot Ethereum ETF In S-1 Amendment

by

As a researcher with a background in finance and experience following the crypto ETF market closely, I’m excited about Invesco Galaxy’s recent move to disclose the sponsor fee for its Spot Ethereum ETF. This development is significant because it provides investors with more clarity on the cost structure of this potential product.

Recently, Invesco Galaxy revealed substantial information about its proposed Spot Ethereum ETF in an updated S-1 filing with the SEC. This development signifies a pivotal moment in the crypto ETF market as several industry giants, such as BlackRock, Bitwise, Fidelity, VanEck, and Franklin Templeton, have also submitted their amendments for Ethereum ETFs to the SEC.

Invesco Galaxy Reveals Sponsor Fee For Spot Ethereum ETF

As an analyst, I’ve noticed that Invesco Galaxy submitted their amendment for the ETF a day after the initial deadline on July 8th. This was expected by industry observers. The S-1 filing they submitted on July 9th provides insights into the financial framework of the ETF. Notably, they highlighted a consistent Sponsor Fee of 0.25% per year.

Under the amended S-1 agreement, the trust is required to pay the sponsor a yearly fee of 0.25%, which is referred to as the “Sponsor Fee.” This charge compensates the sponsor for their services under the trust agreement. The fee will be calculated on a daily basis and subsequently paid in U.S. dollars on a monthly basis, in arrears. The administrator will determine the fee based on the trust’s overall net asset value.

Additionally, the Trust’s manager or their representative will guide the execution agent to exchange Ethereum kept in the trust for US dollars to cover expenses. The declaration explains that the Trust is not liable for covering any costs linked to transferring Ethereum for payment of the Sponsor Fee or for creation and redemption transactions.

Read More

2024-07-09 14:15