Following the SEC’s approval of Ethereum Spot ETFs, asset managers have been scrambling to file amendments to their S-1 forms. Among them, Franklin Templeton has made waves by announcing a low sponsor fee of 0.19%.
Franklin Templeton’s Low Fees
Franklin Templeton’s Ether spot ETF will charge a 0.19% fee, meaning investors will pay $1.90 for every $1,000 invested. This fee is significant because it could attract investors looking for low-cost options. Franklin Templeton also offers a similar fee for its Bitcoin spot ETF, making it one of the lowest in the market.
Other Issuers Submit Forms
Other issuers, including VanEck, Invesco Galaxy, Grayscale, BlackRock, and 21Shares, have also submitted amended S-1 forms to the SEC. However, they have not yet disclosed their sponsor fees.
JPMorgan Predicts Lower Demand
JPMorgan analysts predict that Ethereum spot ETFs will attract less investment than Bitcoin spot ETFs. They estimate that Ethereum ETFs could attract $3 billion in 2024, rising to $6 billion if staking is introduced. This is significantly lower than the $13.69 billion currently invested in Bitcoin spot ETFs.
Ethereum’s Market Cap
Analysts attribute the lower demand for Ethereum spot ETFs to the asset’s smaller market cap compared to Bitcoin. As of writing, Ethereum is trading at $3.777 with a slight gain of 0.45% in the last 24 hours.
