Ethereum
Grayscale to Have Lowest Ethereum ETF Fees in Major Reversal
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Leading cryptocurrency asset manager Grayscale has introduced very low fees of just 15 basis points for its mini Ethereum ETF.
This means that Grayscale will now have the cheapest ETF. For comparison, BlackRock’s iShares Ethereum Trust will have a fee of 25 basis points.
The asset manager’s mini-ETF was given the green light by the U.S. Securities and Exchange Commission earlier this month. The fund is expected to launch alongside rival products later this month.
As reported by U.TodayEthereum spot ETFs will likely launch on July 23 after months of anticipation.
“Grayscale has become aware”
“This is what I expected yesterday. Grayscale woke up,” financial lawyer Scott Johnsson said in response to Grayscale’s decision.
Some analysts believe it will now take a leading position in the Ethereum ETF race after being seen as the underdog that has to compete with giants such as BlackRock.
“There is no reason not to capitalize on this by taking a leadership position in how they approach competition in the crypto spot ETF category,” ETF Store President Nate Geraci said in a social media post.
It’s worth noting that Grayscale’s Ethereum ETF has a 2.5% fee. Apollo CEO Julian Fahrer recently predicted that it would be “reasonable” to expect significant outflows due to such high fees.
The massive outflows seen by Grayscale’s GBTC ended up being a major bearish headwind for Bitcoin.
Will Ether ETFs Underperform?
Despite the hype surrounding the upcoming launch of Ether ETFs, there is still a lot of uncertainty about how they will perform after their imminent launch.
JPMorgan, for example, has forecast that inflows will disappoint the market. Coinbase researchers believe that disappointing inflows could be a bearish headwind for the market.
About the Author
Alex Dovbnia
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has authored over 1,000 articles for U.Today, CryptoComes, and other fintech outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. You can contact him at alex.dovbnya@u.today.