21Shares has submitted a revised S-1 form for its Spot Ethereum ETF. Filed on Wednesday, July 17, the document outlines crucial details about the Trust’s operations and associated fees, highlighting the sponsor fee to be implemented upon trading commencement.
Sponsor Fee and Market Positioning
According to the SEC filing, 21Shares Core Ethereum Trust (CETH) will pay a unitary sponsor fee of 0.21% of its Ethereum (ETH) holdings. This fee aligns with market standards, following VanEck’s 0.20% fee, which initiated discussions on competitive pricing among issuers.
Additionally, 21Shares has proposed a six-month fee waiver to attract investors, effective until the Trust’s assets reach $500 million.
Bitwise has offered a similar fee waiver, although specific sponsor fee details are yet to be disclosed. Invesco Galaxy revealed a 0.25% fee in a July 9 filing, placing 21Shares second in the competitive fee structure for Spot Ethereum ETFs.
The amended S-1 filing reflects 21Shares’ strategic approach to making its ETF appealing to crypto market investors.
Launch Timeline and Market Anticipation
The Ether ETF is expected to launch on July 23. Bloomberg reported that the final round of S-1 amendments, including fee details, was due on July 17. Eric Balchunas, a Senior Bloomberg ETF analyst, anticipates the launch next Tuesday if no last-minute issues arise.
Preliminary SEC approval for at least four issuers has set the stage for forthcoming developments. The approval process has involved updating critical 19b-4 forms, with the historic May 23 approval of filings for eight applicants, including BlackRock, VanEck, 21Shares, and Grayscale.
21Shares was the first to submit an updated S-1 for its Ethereum ETF application, paving the way for other issuers to follow. The market now awaits S-1 amendments from Grayscale, Bitwise, BlackRock, Invesco Galaxy, Franklin Templeton, and VanEck. However, with VanEck and Invesco Galaxy having previously disclosed their fees, further updates may be minimal.
The anticipated Spot Ethereum ETF launch coincides with significant crypto events, such as The Bitcoin Conference in Nashville on Tuesday, July 23. The timeline is expected to draw considerable market attention, especially with Donald Trump scheduled to attend the conference.
Also Read: Ether Surpasses $2.4K as Ark Invest and 21Shares Revise Spot ETH ETF Filing
