Leading cryptocurrency asset manager Grayscale has introduced a very low fee of just 15 basis points for its mini Ethereum ETF.
This means that Grayscale will now have the lowest-cost ETF. For comparison, BlackRock's iShares Ethereum Trust will have a fee of 25 basis points.
Alex DovbnyaThe asset manager's mini ETF was greenlit by the U.S. Securities and Exchange Commission earlier this month. The fund is expected to go live alongside competing products later this month.
As reported by U.Today, spot Ethereum ETFs will likely be launched on July 23 after months of anticipation.
"Grayscale wised up"
"This is what I was expecting yesterday. Grayscale wised up," finance lawyer Scott Johnsson said in response to Grayscle's move.
Some analysts believe that it will now take a leadership position in the Ethereum ETF race after being seen as the underdog that has to compete with such giants as BlackRock.
Gamza Khanzadaev"No reason not to capitalize on that by taking a leadership position in how they approach competition in the spot crypto ETF category, " Nate Geraci, president at the ETF Store, said in a social media post.
It is worth noting that Grayscale's Ethereum ETF has a 2.5% fee. Apollo CEO Julian Fahrer recently predicted that it would be "reasonable" to expect significant outflows due to such high fees.
The massive outflows recorded by Grayscale's GBTC ended up being a major bearish headwind for Bitcoin.
Will Ether ETFs underperform?
Despite the hype surrounding the upcoming launch of Ether ETFs, there is still a lot of uncertainty about how they are going to perform following their imminent launch.
JPMorgan, for instance, has forecasted that the inflows would disappoint the market. Coinbase's researchers believe that underwhelming inflows could be a bearish headwind for the market.
