New: 21Shares Submits Revised S-1 for Ethereum ETF, Discloses Sponsor Fee

21Shares has recently submitted an updated S-1 form for its Spot Ethereum ETF, providing insights into the Trust’s operations and fees. The filing disclosed a sponsor fee to be applied once the ETF commences trading, with a unitary sponsor fee of 0.21% of its Ethereum (ETH) holdings as per the SEC filing. This fee is in line with market expectations, following VanEck’s previous announcement of a 0.20% fee, which had sparked speculation of lower fees from other issuers.

Notably, 21Shares has proposed a complete waiver of the sponsor fee for the initial six months post the Ethereum ETF listing. However, this waiver may be lifted once the Trust’s assets reach $500 million or earlier based on achieving the milestone. This strategic move aims to attract investors by reducing operational costs during the Trust’s early growth phase.

Comparatively, Bitwise had also offered a similar fee waiver, though details on their sponsor fee are yet to be announced. In a July 9 filing, Invesco Galaxy disclosed a 0.25% fee, positioning 21Shares as the second issuer with a competitive fee for Spot Ethereum ETFs. The amended S-1 filing emphasizes 21Shares’ proactive approach in structuring its ETF to appeal to potential investors in the crypto market, aligning with the anticipated Ether ETF launch set for July 23.

Bloomberg had reported that July 17 marked the final round of S-1 amendments with fee details, a prediction validated by 21Shares’ filing. Senior Bloomberg ETF analyst, Eric Balchunas, anticipates the launch to occur next Tuesday barring any unforeseen setbacks. The SEC has preliminarily approved at least four issuers, signaling imminent developments pending final procedural checks. This follows the May 23 approval of the 19-b4 filings for eight applicants, including BlackRock, VanEck, 21Shares, and Grayscale.

As 21Shares led the way with the first updated S-1 for its Ethereum ETF application, other issuers are expected to follow suit. The market eagerly awaits S-1 amendments from Grayscale, Bitwise, BlackRock, Invesco Galaxy, Franklin Templeton, and VanEck. The forthcoming Spot Ethereum ETF launch coincides with significant crypto events like The Bitcoin Conference in Nashville on July 23, attracting heightened market attention, especially with Donald Trump’s attendance expected to generate additional buzz.

The evolving landscape of ETFs in the crypto market underscores the industry’s growth and investor interest. With various issuers vying for market share through competitive fee structures and strategic offerings, the launch of the Spot Ethereum ETF represents a significant milestone in bridging traditional finance with the digital asset space.