Spot Bitcoin ETF Issuers Disclose Fees, Bitcoin Price Reacts
According to the recent Bitcoin ETF filings, top asset managers filed amendments containing key details around eagerly anticipated spot Bitcoin ETF applications this week. The rush of revisions hits Monday’s deadline for information like sponsor fees ahead of rumored approvals.
With fees lower than expected, analysts say ultra-competitive pricing could ignite a ruthless fee war as issuers vie for market share.
Key Details:
- BlackRock has set a sponsor fee of 0.3%, dipping to an even lower 0.2% for the first year.
- VanEck has chosen a permanent fee of 0.25%, making it one of the most competitive offerings among the issuers.
- WisdomTree has opted for a higher 0.5% fee, positioning itself at the upper end.
- Ark Invest/21Shares joins VanEck with a 0.25% fee.
- Fidelity proposes a 0.39% fee for its Bitcoin ETF.
- Invesco Galaxy stands out with a 0.59% fee, marking one of the highest among the contenders.
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Bloomberg Bitcoin ETF analyst reacts to the updated fees
Bloomberg ETF analyst Eric Balchunas shared his insights on the recent developments in the Bitcoin ETF race through a series of tweets. Expressing surprise at BlackRock’s lower-than-expected 0.30% fee for its Bitcoin ETF, Balchunas coined it the “ETF Terrordome.”
Balchunas further emphasized the potential impact of BlackRock’s reduced fee, dropping to 0.20% for the first six months or until the ETF hits $5 billion in assets.
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In a following tweet, the ETF analyst spoke about Ark Invest and its decision to cut fees from 80 basis points to 0.25% shortly after BlackRock’s filing and described this fee reduction as “breathtaking.”
The analyst underscored the importance of fee competitiveness, particularly noting that BlackRock’s 30-basis-point fee could position it as a formidable force against competitors with higher fees. Following the revelation, the price of Bitcoin has surged to trade at almost $45,000 at press time.
