Inside Bitcoins
Hey folks.
Ethereum exchange-traded funds (ETFs) are finally going to hit the market after years of regulatory pushback and countless registration filings.
Shares of publicly traded Ethereum (ETH) ETFs will be listed for the first time on some of the most well-known brokerage platforms in the US, alongside well-known stocks like Apple Inc. (AAPL) and SPDR S&P 500 ETF Trust (SPY).
The expected listings are a defining moment for crypto industry and opportunity for millions of institutional and retail investors in the United States.
There will be nine spot Ether ETFs that go live. The funds are nearly identical in terms of their basic mechanics. Each ETF has a respectable fund manager as its sponsor, keeps spot Ethereum with an approved custodian, and depends on a core set of experienced market makers to issue and redeem shares. They all gain from the same common investor safeguards, including as insurance against cybersecurity threats and brokerage failures.
The deciding factor for most investors boils down to fees. Management fees range from 0.15% to 0.25% for eight of the nine ETH exchange-traded funds.
While the Grayscale Ethereum Trust still charges the management fees of 2.5%.
Paradoxically, Grayscale's product happens to be the undisputed leader in the fee race. With management fees as low as 0.15%, the Grayscale Ethereum Mini Trust (ETH) is a more recent fund designed especially to list as an ETF. For the first six months following listing, or until the fund reaches $2 billion in assets under management (AUM), those fees are fully eliminated.
Reportedly, Franklin Ethereum ETF is said to be another compelling choice with the management fees of 0.19%.
Not a financial advice.