VanEck launches zero-fee plan in bid to become leader in cryptocurrency ETFs

VanEck has announced that its Ethereum ETF will be fee-free, following the same strategy as its previously launched Bitcoin ETF. VanEck's Director of Digital Asset Research, Matthew Sigel, stated that the zero-fee strategy aims to become the "preferred provider" of cryptocurrency ETFs and attract more investors, despite the possibility of initial losses.

VanEck plans to waive fees for the first $1.5 billion in assets until 2025, after which it will charge a 0.20% expense ratio. Franklin Templeton is the only other issuer of a fee-waived Ethereum ETF, with fees of 0.19% and a waiver of up to $10 billion for six months.

VanEck has submitted an 8-A securities registration form to the SEC, which Bloomberg analyst Eric Balchunas sees as a positive sign since it was released on July 2. The fees for BlackRock's ETH ETF are expected to affect the decisions of other funds.