VanEck plans to initially waive fees for the company’s potential Ethereum spot ETF to stay competitive.
VanEck to Waive Fee Initially on Spot Ethereum ETF
In an email to ETF dot com, Matthew Sigel, head of digital assets research for VanEck, wrote that the firm “aims to be a leader on crypto ETF fees even if it means we lose money at the outset.”
They left out the 2nd part of the…
— matthew sigel, recovering CFA (@matthew_sigel) June 25, 2024
Matthew Sigel, head of digital assets research at VanEck, said Target of the company is “to be the leader in crypto ETF fees even if it means we lose money from the start.”
“The plan is to increase volume; in this case the mass of decentralized finance. The company hopes to encourage more investors to explore the potential role of Ethereum in their investment portfolios.”
Sigel’s comments come as VanEck File Form 8-A for its Ethereum product on Tuesday, reflecting further advances on the spot Ether ETF.
Bloomberg ETF senior analyst Eric Balchunas said in a post on X that VanEck’s filing of the new form is “just part of the process.”
Expected capital inflows into Ethereum spot ETF
Bitwise CIO Matt Hougan predicts spot Ethereum ETF will attract $15 billion in capital inflows in the first 18 months after launching in the US.
The US Securities and Exchange Commission (SEC) approved form 19b-4 for eight spot Ethereum ETFs from firms such as Bitwise, BlackRock, and Fidelity on May 23. However, the published reports Potential issuers’ S-1 signatures also need to be approved before trading can begin – which is expected to happen in the coming weeks.
Hougan has compare The relative market capitalization of Ether to Btcoin, data from the global ETP market, and the role of long-term trading in mapping out this number. Spot Bitcoin ETFs hit $15 billion in inflows earlier this month after five months of trading.
Bitwise CIO thinks investors will allocate to spot Bitcoin and Ethereum ETFs in proportion to their market capitalization – $1.2 trillion versus $405 billion. That would give a weighting of about 75% to spot Bitcoin ETFs and 25% to spot Ethereum ETFs.
With more than $50 billion in assets under management through spot Bitcoin ETFs, Hougan expects this number to reach at least $100 billion by the end of 2025 as products mature and are approved on platforms. like Morgan Stanley and Merrill Lynch.
Using $100 million as a starting point, Hougan said spot Ethereum ETFs would need to attract $25 billion over 18 months to reach “parity,” not including the $10 billion in assets under management by Grayscale’s ETHE fund.
Itadori
Bitcoin Magazine
