<p>&ldquo;A BlackRock ether ETF would probably be much more popular than an ether ETF from an upstart ETF issuer, even if the BlackRock fund was five basis points more expensive,&rdquo; he told Blockworks.&nbsp;</p>
<p>Roy acknowledged that a larger difference &mdash; such as 10 or 20 basis points &mdash; could prove to be a bigger deal to investors.&nbsp;</p>
<p>Ultimately, he added, the spot bitcoin ETF saga offers &ldquo;a good template&rdquo; for how competition within the ether ETF category could shake out.</p>
<p>&ldquo;BlackRock and Fidelity have huge advantages which they will exploit, but there is room for smaller issuers like&nbsp;<a href="https://blockworks.co/tag/bitwise" target="_blank" rel="nofollow noopener">Bitwise</a>&nbsp;to gain a foothold in the space as well with low fees and unique angles,&rdquo; he said.</p>
<p>The lowest US spot bitcoin ETF fee &mdash; excluding initial fee waivers &mdash; was Franklin Templeton&rsquo;s, at 0.19%. The firm&nbsp;<a href="https://blockworks.co/news/franklin-templeton-bitcoin-etf-fees" target="_blank" rel="nofollow noopener">undercut Bitwise&rsquo;s 0.20% fee</a>&nbsp;a day after the funds launched.</p>
<p>But Franklin Templeton&rsquo;s BTC fund has attracted just $345 million of net inflows after six months on the market. The Bitwise Bitcoin ETF (BITB) has brought in about $2.1 billion.</p>
<p>Funds by BlackRock and Fidelity lead flows in the category, with $18 billion and $9.5 billion, respectively. Both charge a slightly higher 0.25%.</p>
<p>The most expensive fund by far &mdash; the Grayscale Bitcoin Trust ETF (GBTC), at 1.5% &mdash; has endured $18.6 billion of net outflows.</p>
<p>Industry watchers continue to watch what Grayscale might charge for&nbsp;<a href="https://blockworks.co/news/grayscale-takes-page-from-blackrock-playbook" target="_blank" rel="nofollow noopener">the &ldquo;Mini&rdquo; versions</a>&nbsp;of GBTC and its&nbsp;<a href="https://blockworks.co/news/grayscale-eth-trust-ethe-filing-vaneck-proshares" target="_blank" rel="nofollow noopener">Ethereum Trust</a>&nbsp;(ETHE).</p>
<p>While some advisers have said they have moved money out of GBTC into cheaper BTC funds, others have considered custodians, spreads and liquidity when making decisions on which ETFs to allocate to. &nbsp;</p>
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