Grayscale wises up with lowest spot Ether ETF fee at 0.15%

Grayscale has brought the fight to competitors with the lowest fee for its Grayscale Ethereum Mini Trust (ETH) ETF.

With spot Ethereum ETF issuers filing their final revised S-1 registration statements, Grayscale’s ETH will be the cheapest when trading starts.

On Thursday, the GBTC and ETHE (Grayscale Ethereum Trust) issuer updated its fee for ETH from 0.25% down to 0.15%.

Bloomberg ETF analyst James Seyffart shared the updated fee data on X.

Grayscale wised up with ETH? Analyst thinks so

Notably, Grayscale has maintained the high fee for its Grayscale Ethereum Trust (ETHE) at 2.5%, the highest of the lot. Analysts expect ETHE to see outflows as did GBTC, which also charged similar high fees.

However, Van Buren Capital’s Scott Johnson says Grayscale looks to have wised up after witnessing the dump that hit GBTC. 

Spot BTC ETFs data shows that Grayscale’s GBTC, which has a fee of 1.50%, has seen cumulative outflows of over $18.7 billion since trading started in January. BlackRock’s IBIT, for instance, had cumulative net inflows of over $18.8 billion as of July 18, 2024.

Grayscale might not be keen on making ETH count should ETHE outflows skyrocket.

Johnson believes the 0.15% fee for ETH “puts a lot more pressure on Blackrock and others to market their product out of the gate.” Despite their success with IBIT, BlackRock will have to push harder “to catch up” to the Mini Trust, he added in a post on X.

Ether ETFs fee war

Per documents filed with the US Securities and Exchange Commission (SEC), Franklin Templeton has set its fee for the Franklin Ethereum ETF (EZET) at 0.19%, while VanEck’s ETHV and Bitwise’s ETHW will charge 0.20% and 21Shares’ CETH fee will be 0.21%.

These fees are relatively cheaper compared to Fidelity Investments’ Ethereum Fund (FETH), BlackRock’s iShares Ethereum Trust (ETHA) and Invesco Galaxy Ethereum ETF (QETH). All three will have post-waiver period fees at 0.25%.

However, Fidelity will have a 0.00% fee at launch, waiving charges until December 31, 2024. BlackRock will initially have its fee at 0.12%, with the waiver period set at 12 months or assets hitting $2.5 billion.

Meanwhile, Grayscale will waive the ETH fee for six months or total fund assets threshold of $2 billion. Franklin will charge zero fees until January 31, 2025 or when the ETF hits $10 billion in assets.

VanEck has set a one year waiver period or waiver amount of $1.5 billion, while Bitwise and 21Shares both have six-month fee waiver periods or waiver amount of $500 million.

SEC approved spot Ether ETFs in May and the market expects trading to go live next week.

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