VanEck Launches Fee-Free Spot Ethereum ETF, Targets $1.5B AUM by 2025

• VanEck waives fees on its Ethereum ETF to expedite asset growth, aiming for $1.5 billion by 2025.
• Positioned competitively against rivals like Franklin Templeton, VanEck leverages strategic fee adjustments to attract investors.

Following an update from CNF, VanEck has reiterated its commitment to Ethereum, predicting that ETFs for this altcoin will eventually surpass those for Bitcoin, despite Ethereum’s struggle to reclaim the $3,600 level. VanEck announced it will waive fees on its proposed spot Ethereum ETF until it surpasses $1.5 billion in assets or until 2025, whichever comes first, after which a 0.2% fee will be charged.

As highlighted in Today’s CNF YouTube video, VanEck’s approach mirrors its strategy with its Bitcoin Trust, where fees were also waived to boost inflows. Managing $102 billion in assets, the firm aims to lead the competitive crypto ETF fee landscape to foster investments in Ethereum.

This initiative arrives amidst stiff competition; notably, Franklin Templeton charges 0.19% for its Ethereum fund, with other major issuers still to declare their fees.

Furthermore, according to the ETF news dated May 25, 2024, VanEck is venturing into a fiercely competitive market alongside firms like Franklin Templeton, which charges 0.19% for its spot Ethereum fund. This situation is similar to the earlier battles among spot Bitcoin ETFs.

Will Targets $1.5B AUM by 2025 be achievable?

Strategic moves have positioned VanEck as a frontrunner in low ETF fees for cryptocurrencies, replicating its strategy from its Bitcoin Trust. However,  in achieving the $1.5 billion target by 2025 will depend on continued investor interest and market dynamics. Nevertheless, this method is expected to catalyze interest and investment in Ethereum, widening its appeal in investment portfolios.

Moreover, the news also noted that VanEck has waived the fee on the fund until March 31, 2025, unless the ETF reaches $1.5 billion in assets, at which point a 0.2% fee will be implemented. To date, HODL has accumulated about $525 million in inflows.

As shown in the ETH Price chart below, Ethereum (ETH) currently stands at $3,378.58, marking a modest increase of 0.28% over the past day, although it has seen a decrease of 4.36% over the past week.

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