VanEck to launch a spot Ethereum ETF for free on July 2

VanEck files Form-8A related to its spot Ethereum ETF and simultaneously eliminates ETF fees until its assets reach the $1.5 billion target. 

According to analysts’ calculations, the Ethereum ETFs are anticipated to be introduced by the beginning of July. This decision has enabled the organization to establish a competitive advantage.

Matthew Sigel, VanEck’s Head of Digital Assets, stated that the organization’s objective is to establish a trend regarding ETF fees and will mitigate losses if necessary at the outset. Their intention is to rely on the decentralized finance volume factor to substantiate this. 

If the Ether ETFs draw attention in relation to Ethereum, this will contribute to the network’s traction, thereby increasing the price of Ethereum.

In addition, and in the words of Sigel, the company is scouring avenues for investments in Ethereum-oriented DeFi projects like Aave and Curve.

At present, Franklin Templeton and VanEck are the sole prospective issuers that have disclosed the fees associated with Ether ETFs. Prior to this, Franklin disclosed that 0.19% fees would be imposed on its spot Ethereum ETF.

According to Eric Balchunas, an ETF analyst, suppliers normally refrain from disclosing their fee structure until the release date. However, this time around, all eyes are on BlackRock before making any decisions.

A key consideration in determining the ETF fees would be the elimination of the Ethereum staking feature from spot Ethereum ETFs. Staking ETH allows investors to earn an extra 3% interest on direct Ether deposits. Therefore, ETFs offering Ethereum will need to make further efforts to entice investors. 


Elsewhere, the SEC Chair, Gary Gensler, mentioned the fact that the discussions related to spot Ethereum ETFs are running uninterruptedly.

Harsh Chauhan

Harsh Chauhan is an experienced crypto journalist and editor at CryptoNewsZ. He was formerly an editor at various industries and has written extensively about Crypto, Blockchain, Web3, NFT and AI. Harsh holds a Bachelor of Business Administration degree with a focus on Marketing and a certification from the Blockchain Foundation Program. Through his writings, he hold the pulse of rapidly evolving crypto landscape, delivering timely updates and thought-provoking analysis. His commitment to providing value to readers is evident in every piece of content produced.

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