Global asset manager Franklin Templeton has set a new standard in the competitive Ethereum ETF market by announcing an unprecedentedly low management fee of 0.19% for its proposed Franklin Ethereum ETF. Detailed in an updated S-1 filing with the Securities and Exchange Commission (SEC) on Friday, this move underscores Franklin Templeton’s aggressive strategy to attract investors by minimizing costs.
“The sponsor’s fee is accrued daily at an annualized rate equal to 0.19% of the net asset value of the fund and is payable at least quarterly in arrears in U.S. dollars or in-kind or any combination thereof,” Franklin Templeton stated in the filing.
In a bold move to capture market share, the fund will also waive all sponsor fees on its first $10 billion for the initial six months post-launch. This strategy mirrors the competitive fee structures seen in the Bitcoin spot ETF market, where firms like Fidelity and VanEck introduced temporary fee waivers to outmaneuver rivals.
Franklin Templeton previously launched a Bitcoin ETF but faced stiff competition, losing out on volume and assets. Learning from that experience, the company is now prioritizing cost leadership to ensure a stronger market entry for its Ethereum ETF.
Bloomberg ETF analyst Eric Balchunas highlighted the significance of this approach on Twitter, noting that most Ether spot ETFs in other regions charge over 1%, while the U.S. ETF market’s competitive nature has driven fees substantially lower.
This aggressive pricing strategy comes as the SEC recently approved 19b-4 applications for seven other Ether spot ETFs, with expectations that these funds will begin trading on national securities exchanges within weeks.