- Franklin Templeton filed an amended S-1 form with the SEC for its spot Ethereum ETF application
- The firm plans to charge a 0.19% sponsor fee for its spot Ethereum ETF
- It could take a few weeks before the S-1 forms become effective and spot Ethereum ETFs can begin trading
Franklin Templeton filed an amended S-1 form with the SEC for its spot Ethereum ETF application on Friday. The financial institution plans to charge a 0.19% sponsor fee, the same as its spot Bitcoin ETF. This puts it among the cheapest in the industry so far. However, it could still take a few weeks for the S-1 forms to become effective and for trading to begin.
Background on Spot Ethereum ETFs
Franklin Templeton is one of several firms seeking to launch a spot Ethereum ETF after successfully debuting a spot Bitcoin ETF. These products allow investors to bet on the cryptocurrency’s price without having to directly purchase Ethereum. Other major finance companies like VanEck and BlackRock have also filed for spot Ethereum ETFs in recent weeks.
Details on Franklin Templeton’s Filing
The firm filed an amended S-1 form after getting initial approval from the SEC last week. The filing discloses that Franklin Templeton plans to charge a 0.19% sponsor fee. This matches the fee for its spot Bitcoin ETF EZBC, which does not charge any fee initially. The ETF will be among the cheapest in the industry. However, the SEC approval process means it could still take weeks before trading commences.
Industry Expert Analysis
According to Eric Balchunas, Senior ETF Analyst at Bloomberg, Franklin Templeton’s 0.19% fee represents the “opening shot in the Eth ETF fee war.” The financial giant joins competitors in trying to offer the lowest cost product to capture investor interest.
Conclusion
Major finance firms are racing to launch spot Ethereum ETFs after successfully offering spot Bitcoin products. Franklin Templeton filed an amended S-1 detailing a competitive 0.19% fee. However, the regulatory approval process means these new ETFs likely won’t begin trading for a few more weeks at the earliest. The spot Ethereum ETF market is heating up as giants like Franklin Templeton try to undercut each other on fees to attract investor capital.
