## VanEck to Waive Fees on Proposed Spot Ethereum ETF Until 2025 or $1.5 Billion AUM
**Investment Manager VanEck** plans to waive the fees on its **proposed spot Ethereum (ETH) exchange-traded fund (ETF)** until 2025, unless the fund reaches **$1.5 billion in assets under management (AUM)**. This information was revealed in an amended S-1 filing on Friday.
### No Fees Until 2025 Unless $1.5 Billion AUM is Reached
"If the Trust's assets exceed **$1.5 billion** before 2025, the **sponsor fee** on assets over $1.5 billion will be 0.20%," according to the filing. "After 2025, the Sponsor Fee will be 0.20%."
### Encouraging Investor Interest
VanEck’s head of digital assets research, **Matthew Sigel**, told **ETF.com** that this move aims to make VanEck a **leader in crypto ETF fees**. This decision is designed to attract investors to explore Ethereum's potential role in their portfolios, even if VanEck incurs losses initially. **Sigel** explained in a post on **X** (formerly known as Twitter) that the strategy relies on "making it up on volume," specifically referring to **decentralized finance (DeFi)** activity.
### Impact of DeFi Volume
When DeFi volume increases, it leads to more **onchain activity**. This means more **ether gas** is spent, which can push the **price of ether** higher, ultimately benefiting VanEck's investments in ether.
### SEC Filings and Approvals
VanEck has also filed a **Form 8-A** with the **U.S. Securities and Exchange Commission (SEC)**. This form is essential for registering securities before they are listed on an exchange. Earlier this year, the **SEC approved eight spot ether ETF applications**, including VanEck's.
### Disclosures and Launch Preparation
According to **SEC Chair Gary Gensler**, the process of making the necessary disclosures for these ETFs is progressing smoothly. "It's really about the **asset managers** making the full disclosure so those **registration statements** can go effective," Gensler said at a **Bloomberg Invest Summit** in New York.
VanEck’s strategic move to waive fees aims to attract investment into their **spot Ethereum ETF**, anticipating higher **onchain activity** and increased **DeFi volume** leading to better returns.
John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.
