Key Points
- VanEck plans to waive fees for its potential spot Ethereum ETF once it receives approval from the SEC.
- The firm is making this move to stay competitive in the market, anticipating to make up for the losses with DeFi volume.
Investment asset management company VanEck is unfazed by potential losses from its decision to waive fees for its proposed spot Ethereum ETF.
Matthew Sigel, the Head of Digital Assets Research at VanEck, stated that the firm will implement this strategy once it receives approval from the United States Securities and Exchange Commission (SEC) to commence trading.
VanEck’s Strategic Decision
The decision is part of a strategy to remain competitive among other issuers.
Despite the anticipated losses, VanEck believes it can offset these with Decentralized Finance (DeFi) volume.
Sigel has urged more investors to consider the potential role of Ethereum in their investment portfolios.
VanEck continues to invest in its potential spot Ethereum ETF while it waits for regulatory approval.
The firm filed a Form 8-A for its Ethereum product, marking a registration that allows issuers to trade on an exchange once the product receives the necessary approval.
Spot Ethereum ETF Fees War Continues
In the race among spot Ethereum ETF filers, Franklin Templeton has also made a move with its sponsor fee.
In its updated S-1 amendment filing, the asset manager revealed that it would only charge a 0.19% sponsor fee, setting a new standard in the spot Ethereum ETF market.
VanEck’s fee was initially set at 0.2%.
Other applicants for spot Ethereum ETFs have not disclosed their sponsor fees, but the positions of VanEck and Franklin Templeton may push them to lower their fees.
Grayscale Investment, which had a high fee for its spot Bitcoin ETF (1.5%), may choose to follow the same path.
However, it may also consider the repercussions of such high fees.
For its GBTC, Grayscale saw massive outflows that exceeded the outflows from other Bitcoin ETFs combined, reaching up to $17 billion.
It is therefore possible that the firm may reconsider and adopt a lower fee, although it is uncertain how low Grayscale is willing to go.
