🌋 Investors Face High Fees Again with Grayscale
posted 18 Jul 2024
The structure of upcoming spot Ethereum ETFs in the US is becoming evident. Most issuers are setting initial client discounts that transition into fees between 0.19% and 0.25%.
Grayscale’s Ethereum Trust ($ETHE) stands out with a 2.5% fee, which has raised concerns about possible fund outflows akin to those seen with GBTC. Bloomberg’s ETF analyst Eric Balchunas noted this could impact net inflows into spot Ethereum ETFs.
Nonetheless, Grayscale has introduced the Ethereum Mini Trust ($ETH) with a 0.25% fee. According to James Seyffart, 10% of $ETHE will be automatically transferred to $ETH.
The creativity seen in spot Bitcoin ETF tickers (BRRR, HODL, DEFI) seems absent in the Ethereum equivalents.
Still, the market sees some intriguing developments. The president of The ETF Store, Nate Geraci, pointed out new offerings from Direxion, including a bullish LMBO with 2x leverage and a bearish REKT.
It’s worth noting that analysts expect spot Ethereum ETFs to launch on July 23rd, a topic we explored in detail in a dedicated article.
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