21Shares Files Revised S-1, Features 0.21% Sponsor Fee

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As a seasoned crypto investor with years of experience in the digital asset market, I have closely followed the developments surrounding Ethereum Exchange-Traded Funds (ETFs) and their proposed fees. 21Shares’ recent S-1 filing announcement has piqued my interest due to its competitive fee structure and strategic positioning.

As a researcher, I’ve come across an update regarding 21Shares and their revised S-1 filing for the Spot Ethereum ETF. This document was submitted on July 17 and contains essential information about the Trust’s operational aspects and related fees. Notably, it reveals the sponsor fee that will be applicable once trading begins.

Sponsor Fee and Market Positioning

Based on the SEC filing, the 21Shares Core Ethereum Trust (CETH) is set to pay a sponsor fee of 0.21% on its Ethereum (ETH) holdings. This fee is consistent with industry norms, mirroring VanEck’s 0.20% fee that sparked debates among issuers regarding competitive pricing.

As a researcher examining the offerings of 21Shares, I’d like to highlight that they have proposed waiving management fees for a period of six months as an enticement to potential investors. This fee waiver will remain in effect until the assets under management by the Trust surpass the $500 million mark.

Bitwise and Invesco Galaxy have both announced fee waivers for their respective Ethereum ETFs, although the exact sponsor fees from Bitwise are still undisclosed. According to a July 9 filing, Invesco Galaxy will charge a management fee of 0.25% for its Ethereum ETF, making 21Shares the second-lowest cost option among Spot Ethereum ETFs in terms of fees.

The revised S-1 document showcases 21Shares’ plan to attract crypto market investors with its ETF through strategic adjustments.

Launch Timeline and Market Anticipation

Based on current reports, the Ether Exchange-Traded Fund (ETF) is projected to debut on July 23. According to Bloomberg, the final set of S-1 amendments, which include information about fees, were supposed to be submitted by July 17. Eric Balchunas, a senior ETF analyst at Bloomberg, expects the launch to occur next Tuesday, barring any unexpected complications.

As a crypto investor, I’m excited to share that the 21Shares Ether ETF will have a fee of only 0.21%, which is quite competitive in the market, often referred to as the “terrordome” fee due to its low percentage. The ticker symbol for this new ETF is $CETH. Keep an eye out today as I expect more crypto ETF filings to be made public throughout the day.— Eric Balchunas (@EricBalchunas) July 17, 2024

Four companies have received preliminary Securities and Exchange Commission (SEC) approval, paving the way for future advancements. The approval procedure entailed revising significant 19b-4 forms, with the notable May 23 green light for eight applicants: BlackRock, VanEck, 21Shares, and Grayscale.

Twenty-One Assets Trust was the pioneer in filing an amended S-1 form for its proposed Ethereum ETF, opening the door for other applicants such as Grayscale, Bitwise, BlackRock, Invesco Galaxy, Franklin Templeton, and VanEck. The investment community is currently keeping a close eye on these entities for any upcoming S-1 modifications. Notably, VanEck and Invesco Galaxy have already revealed their fee structures, suggesting that potential adjustments may be limited in these cases.

The upcoming launch of the Spot Ethereum ETF is set to occur around the same time as notable crypto events, including The Bitcoin Conference in Nashville on July 23. This timing is likely to generate substantial market interest, particularly since former President Donald Trump is slated to attend the conference.

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2024-07-17 20:20