## 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.
