Following the US Securities and Exchange Commission's (SEC) approval of Ethereum Spot ETFs, several asset management firms have filed revised S-1 forms. Franklin Templeton, a prominent investment firm, has taken the lead by announcing a sponsor fee of 0.19% for its Ether Spot ETF. This fee structure is significant because it will be used to cover management and operational expenses for the ETF.

For every $1,000 invested in the fund, investors will need to pay $1.90. This fee is crucial in attracting investments, as it serves as an incentive for investors. Franklin Templeton's fee is competitive, especially considering that it also offers the same fee for its Bitcoin spot ETF, which is one of the lowest fees in the market. Other firms, such as VanEcK, Invesco Galaxy, Grayscale, BlackRock, and 21Shares, have also submitted their amended S-1 forms to the SEC.

The approval of the 19b-4 forms on May 23 was a significant milestone, but the processing of the S-1 forms is still ongoing. The submitted forms are subject to comments from the Commission, which may require further amendments. This process may be lengthy, but it is crucial for any trading to commence.

JPMorgan Predicts Lower Demand for Ethereum Spot ETFs

JPMorgan, a prominent investment bank, has predicted that Ethereum spot ETFs will attract significantly less investment than their Bitcoin counterparts. According to analysts, these ETFs may only attract $3 billion in investments in 2024, potentially rising to $6 billion if staking is introduced. In comparison, Bitcoin spot ETFs launched in January are currently valued at $13.69 billion.

This prediction is supported by Bloomberg analyst James Seyffart, who highlighted the massive difference in the market capitalization of Ethereum and Bitcoin. At the time of writing, Ethereum trades at $3.777 with a slight gain of 0.45% in the last 24 hours. The asset's daily trading volume is up by 4.80% and valued at $15.40 billion.