VanEck leads fee war, Ethereum spot ETF expected to debut on July 2

ETF issuer VanEck initiates an Ethereum spot ETF fee war, waiving fees for the first $1.5 billion in assets. Additionally, VanEck submitted an 8-A form to the SEC on 6/25, signaling that once approved, the issuer can trade on exchanges. Bloomberg analyst Eric Balchunas suggests that the approval and listing of an Ethereum spot ETF on July 2nd would be a positive sign.

VanEck Initiates Ethereum Spot ETF Fee War

Matthew Sigel, Director of Digital Assets Research at VanEck, stated:

VanEck aims to lead in cryptocurrency ETF fees, even if it means operating at a loss initially.

According to their filed documents, the ETF will charge a fee of 0.20% for assets over $1.5 billion until 2025. After 2025, the fee will remain at 0.20%.

VanEck's plan is to offset this through trading volume, with Sigel specifically explaining that in this case, it refers to decentralized finance trading volume.

More on-chain activities = more ETH gas consumption = ETH price increase = VanEck ETH ETF increase

HODL Actively Competing in the Market

VanEck is also the issuer of a Bitcoin spot ETF. About two months after its launch, VanEck reduced fees for its VanEck Bitcoin ETF HODL in an effort to increase fund inflow. VanEck waived fees for the ETF until March 31, 2025, or until its assets reach $1.5 billion, after which a fee of 0.2% will be charged. As of June 25th, fund inflows for HODL were approximately $518 million, with assets totaling $611 million. Among all Bitcoin spot ETFs, it ranks fifth in terms of inflow, following BlackRock, Fidelity, Ark, and Bitwise.

As shown in the chart below, fund inflows surged after the fee reduction, with a two-day inflow of $200 million.

VanEck Submits 8-A Form, Will Ethereum Spot ETF be Approved?

On Friday, June 21st, several Ethereum spot ETF issuers submitted revised S-1 forms, with VanEck and Franklin being the first to announce significantly low management fees of 0.20% and 0.19%, respectively, putting pressure on issuers like BlackRock.

VanEck further submitted another 8-A form to the U.S. Securities and Exchange Commission (SEC) on June 25th. This move signifies that once approved, the issuer can trade on exchanges, indicating progress for the Ethereum spot ETF. Bloomberg analyst Eric Balchunas also mentioned that the Ethereum spot ETF is expected to be approved for listing on July 2nd, a positive sign.

SEC Chairman Gary Gensler also mentioned at a Bloomberg investment summit that the progress for the Ethereum spot ETF listing is "progressing well," although he is unsure of the specific approval timeline.

Gary Gensler: Progress of Ethereum Spot ETF Approval "Progressing Well"