The fee for VanEck's Ethereum spot ETF is 0.2%, and the fees for the first $1.5 billion in assets will be waived

VanEck recently disclosed that it will waive the fees for its spot Ethereum ETF, emulating the strategy of its earlier launched Bitcoin ETF. Matthew Sigel, Director of Digital Asset Research at VanEck, stated that the zero-fee strategy aims to make VanEck the "preferred provider of cryptocurrency ETFs."

Sigel added that although initially facing losses, VanEck believes its approach will "resonate" with various investors and help increase investor interest in Ethereum and the role this product can play in their portfolios. In addition, lower fees are expected to reduce entry barriers for new investors.

On June 22nd, VanEck disclosed its fee reduction plan in an S-1 amendment file. It plans to waive fees on assets up to $1.5 billion before 2025 and then charge a sponsor fee of 0.2%.

In addition, Franklin Templeton revealed a sponsor fee of 0.19% for its spot Ethereum ETF with an exemption limit of $10 billion for six months. Both charges are comparable to those of lowest-cost spot Bitcoin ETFs. Apart from Grayscale GBTC's fee being 1.5%, most spot Bitcoin ETFs have fees ranging between 0.19% and 0.39%.