- Franklin Templeton files amended S-1 for Ethereum spot ETF with 0.19% fee.
- The SEC is requiring all Ethereum ETF spot issuers to file amended S-1 forms by Friday.
- Franklin Templeton’s Spot Bitcoin ETF also charges a 0.19% fee and currently manages $350 million in assets.
Franklin Templeton filed his amended form S-1 for the Ethereum Spot ETF in accordance with the SEC’s directive that all issuers of Ethereum Spot ETFs must submit their amended S-1 forms by Friday.
In the amended S-1, Franklin Templeton plans to charge a competitive sponsorship fee of 0.19% for the ETF, which could be the lowest among its peers.
Franklin Templeton’s success with crypto ETFs
Franklin Templeton was among eleven companies whose spot Bitcoin ETFs were approved by the SEC earlier this year.
The company’s foray into the Ethereum ETF space is supported by the success of its spot Bitcoin ETF, which currently manages approximately $350 million in assets. This strong performance of the Bitcoin ETF highlights the company’s ability to manage cryptocurrency investment products and sets a promising precedent for its upcoming Ethereum ETF.
Its Spot Ether ETF application positions it among a growing number of financial institutions seeking to offer investors exposure to Ethereum, the second-largest cryptocurrency by market capitalization, without the need to purchase the digital asset directly.
The aggressive pricing structure of Franklin Templeton’s crypto ETFs
The 0.19% fee offered by Franklin Templeton mirrors the fee structure of its Spot Bitcoin ETF (EZBC), which is also set at 0.19%, making it the lowest among similar financial products currently available.
Initially, Franklin Templeton charged no fees to invest in its spot Bitcoin ETF, a strategy likely designed to attract early investors and build momentum.
Eric Balchunas, senior ETF analyst at Times Of Update, commented on Franklin Templeton’s aggressive pricing structure in a post on saying, “The first shot in the Eth ETF fee war was fired from Franklin, 19 basis points.”
Balchunas’ comment highlights the competitive nature of the booming Ethereum ETF market, where profitability is a key factor in attracting investors.
As companies race against time to meet Friday’s deadline, the stage is set for a new wave of Ethereum-based financial products to enter the market.
Although it may take a few weeks for these filings to take effect, it is expected that ETFs could begin trading within a month or even a few weeks.
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