Franklin Templeton proposes a 0.19% fee in its amended Spot Ethereum ETF S-1

Franklin Templeton files amended S-1 for spot Ethereum ETF with 0.19% fee.
SEC requires all spot Ethereum ETF issuers to file amended S-1 forms by Friday.
Franklin Templeton’s spot Bitcoin ETF also charges a 0.19% fee and currently manages $350M in assets.

Franklin Templeton has filed its amended S-1 form for spot Ethereum ETF following SEC’s directive that all spot Ethereum ETF issuers should send in their amended S-1 forms by Friday.

In the amended S-1, Franklin Templeton plans to charge a competitive 0.19% sponsor fee for the ETF, which is could be the lowest among its peers.

Franklin Templeton success with crypto ETFs

Franklin Templeton was among the eleven firms whose spot Bitcoin ETFs were approved by the SEC at the start of the year.

The firm’s foray into the Ethereum ETF space is buoyed by the success of its spot Bitcoin ETF, which currently manages approximately $350 million in assets. This strong performance of the Bitcoin ETF underscores the firm’s capability in managing cryptocurrency investment products and sets a promising precedent for its upcoming Ethereum ETF.

Its spot ether ETF application positions it among a growing number of financial institutions seeking to offer investors exposure to Ethereum, the second-largest cryptocurrency by market capitalization, without the need to directly purchase the digital asset.

Franklin Templeton’s aggressive crypto ETFs fee structure

Franklin Templeton’s proposed 0.19% fee mirrors the fee structure of its 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 any fee for investing in its spot Bitcoin ETF, a strategy likely designed to attract initial investors and build momentum.

Eric Balchunas, Bloomberg’s Senior ETF Analyst, commented on Franklin Templeton’s aggressive fee structure in a post on X saying, “The opening shot in the Eth ETF fee war has been fired from Franklin, 19bps.”

Balchunas’ comment highlights the competitive nature of the burgeoning Ethereum ETF market, where cost efficiency is a critical factor for attracting investors.

As firms rush against time to beat the Friday deadline, the stage is set for a new wave of Ethereum-based financial products to enter the market.

Although it may take a few weeks for these filings to become effective, the expectations that the ETFs could begin trading in a month’s time if not in a few weeks’ time.