Invesco Galaxy Submits its Updated S-1 for Spot Ethereum ETF


Invesco Galaxy has recently submitted an updated S-1 filing for its spot Ethereum Exchange-Traded Funds (ETFs), marking a significant step forward in the rapidly evolving Ether ETF landscape. According to the S-1 amendment filing, Invesco Galaxy Ethereum ETF (the trust) revealed the sponsor fee for its QETH ETF, a detail closely watched by industry observers and potential investors.

Invesco Galaxy Reveals its Fee Structure

As per the filing, the trust will pay a sponsored fee of 0.25% per annum as compensation for services performed under the Trust Agreement. This fee will be accrued daily and paid monthly in arrears in U.S. dollars. 

Additionally, the filing provides a comprehensive breakdown of the typical expenses covered by the sponsor’s fee. These encompass trustee fees, fees for The Bank of New York Mellon in their capacity as the Administrator, Transfer Agent, and Cash Custodian, Ethereum Custodian fees, Execution Agent fees, exchange listing fees, SEC registration fees, as well as costs related to printing, mailing, legal services, and audits.

Invesco aims to distinguish its offering by setting a competitive fee. This will help the ETFs to stand out and gain market share in a crowded financial products space.

Bitwise Amends S-1 Form for Spot ETH ETF

Early this month, Bitwise filled an amended S-1 form for its Ethereum exchange-traded fund. This development indicates that the product is nearly ready for market debut, with analysts predicting that the ETFs could begin listing soonest. Meanwhile, sources close to the situation have indicated that the U.S. SEC might approve the final drafts by the end of this week.

The SEC had previously approved 19b-4 forms for eight spot Ethereum ETFs, including Bitwise, on May 23. However, issuers must have their S-1 statements become effective before trading can commence. This two-step regulatory process has kept the market on edge, eagerly awaiting the launch.

Few Remaining Hurdles

The submission of the S-1 form by the SEC with only a few comments suggests that there are only a few obstacles left. Analysts see this as the last stage of feedback, which increases confidence in an imminent launch.

One important change in the Bitwise S-1 form involves exempting the sponsor fee for the initial $500 million in assets. Nevertheless, the company has not revealed the fee arrangement for amounts exceeding this limit. This strategic decision is intended to entice early investors by reducing entry barriers. 

VanEck, another issuer, also stated that it would initially waive fees. These competitive maneuvers demonstrate a larger pattern among issuers to enhance the attractiveness of their offerings to prospective investors..

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