- Franklin Templeton Amends S-1 for Spot Ethereum ETF with 0.19% Fee.
- The SEC requires all spot Ethereum ETF issuers to file revised Form S-1s by Friday.
- Franklin Templeton’s spot Bitcoin ETF also charges a 0.19% fee and currently has $350 million in assets under management.
Franklin Templeton filed an amended Form S-1 for its Spot Ethereum ETF following the SEC’s directive that all issuers of a Spot Ethereum ETF must send an amended S-1 Form by Friday.
In the revised S-1, Franklin Templeton plans to charge a competitive 0.19% sponsor fee for the ETF, which could be the lowest among its peers.
Franklin Templeton’s success with cryptocurrency ETF
Franklin Templeton was one of 11 companies that had a spot Bitcoin ETF approved by the SEC earlier this year.
The company’s entry into the Ethereum ETF market comes on the back of the success of its spot Bitcoin ETF, which currently has approximately $350 million in assets under management. This strong performance of the Bitcoin ETF highlights the company’s capabilities in managing cryptocurrency investment products and sets a promising precedent for the upcoming Ethereum ETF.
The Spot Ether ETF application joins a growing number of financial institutions seeking to provide investors with exposure to Ethereum, the second-largest cryptocurrency by market capitalization, without having to purchase the digital asset directly.
Franklin Templeton’s Aggressive Cryptocurrency ETF Fee Structure
Franklin Templeton’s proposed 0.19% fee mirrors the fee structure of the spot Bitcoin ETF (EZBC), which is also set at 0.19%, making it the lowest among similar financial products currently available.
Initially, Franklin Templeton did not charge fees for investments in its spot Bitcoin ETF, a strategy designed to attract early investors and build momentum.
“The Eth ETF fee war started with Franklin, 19bps,” Eric Balchunas, senior ETF analyst at Bloomberg, said in a post on X about Franklin Templeton’s aggressive fee structure.
Balchunas’ comments highlight the competitive nature of the fast-growing Ethereum ETF market, where cost efficiency is a critical factor in attracting investors.
As companies race to beat Friday’s deadline, the stage is set for a new wave of Ethereum-based financial products to enter the market.
Although it may take several weeks for these filings to become effective, the expectation is that ETFs could begin trading within a month, if not weeks.