Franklin Templeton has ignited the spot Ethereum ETF "fee war" by being the first to disclose its fees in an amended S-1 application, marking a significant development in the race to offer an Ethereum exchange-traded fund.

In its filing with the United States Securities and Exchange Commission on May 31, Franklin Templeton revealed that "the fees of the Sponsor accrue daily at an annualized rate equal to 0.19% of the net asset value of the Fund."

ETF analyst Eric Balchunas hailed this move as the start of the fee competition in the Ethereum ETF space, emphasizing the significance of fee transparency for investors. Balchunas noted that Franklin Templeton's fee disclosure marked a significant step in the ongoing battle among ETF providers to offer the most competitive fees.

The disclosed sponsor fees, which compensate the fund manager for administrative expenses, are a critical factor for investors when choosing among ETF products, with lower fees often attracting more attention and investment.

While other major players in the Ethereum ETF race, including VanEck, Invesco, and Galaxy, also submitted amended S-1 applications on the same day, none had disclosed sponsor fees. Balchunas observed that the fee competition in the Ethereum ETF arena is currently on hold until other applicants reveal their fee structures.

The filing amendments represent a crucial step in the regulatory process, providing detailed information about the company and the securities they intend to offer. Balchunas anticipates further adjustments and amendments to fine-tune the applications in response to SEC comments, but he believes that the launch of spot Ethereum ETFs by the end of June is a legitimate possibility.

As the Ethereum ETF race heats up, investors eagerly await the rollout of these products, which promise to provide exposure to Ethereum's price movements through a regulated and accessible investment vehicle. With fee transparency emerging as a key battleground, the competition among ETF providers is expected to intensify in the coming weeks.