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As reported by CriptoFácil, the fee war on Ethereum (ETH) ETFs began even before the funds were launched. Two more managers revealed the fee structure of their funds: Invesco and Galaxy.

According to recent filings, the two managers will charge investors a 0.25% management fee on the assets of their ETFs. They did not disclose whether there will be any exemptions.

That’s just slightly higher than the 0.2% that VanEck will charge for its ETF — the manager was the first to disclose its fee structure. But VanEck will waive the fee until the fund reaches $1 billion in assets or until 2025.

Rate war

Since cryptocurrency ETFs are “commoditized,” meaning there is no product difference, asset managers have no competitive advantages. Therefore, fees are one of the few ways they can attract new clients.

In the case of ETH, there are eight managers with ETFs on the table at the same time. The United States Securities and Exchange Commission (SEC) has approved all the applications, but the ETFs have not yet reached the stock exchanges.

When this happens, fees will play a critical role in differentiating a product from others and appealing to investors. In this regard, Grayscale’s Ethereum fund ETHE has the biggest disadvantage, as it charges a much higher-than-normal 1.5% fee.

On the other hand, VanEck has a head start because of its exemption, but giants like Fidelity and BlackRock have yet to disclose their fee structure. If they charge close to VanEck’s or even waive it, they could raise more money and distance themselves from their rivals.

Management fees are used by issuers to pay for the maintenance of a fund, such as marketing costs, salaries and custody services.

Most Bitcoin (BTC) ETF issuers have chosen a fee between 0.19% and 0.3%, which indicates that Ethereum ETFs are likely to follow suit.

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Source: https://www.criptofacil.com/guerra-de-taxas-invesco-e-galaxy-divulgam-taxas-de-etfs-de-ethereum/



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