Following the approval by the U.S. Securities and Exchange Commission's (SEC) on spot Bitcoin exchange-traded funds (ETFs).
Following the approval by the U.S. Securities and Exchange Commission's (SEC) on spot Bitcoin exchange-traded funds (ETFs), BlackRock, ARK Invest and 21Shares and other issuers have reduced the fees for their ETFs in a bid to gain market share.
In a new S-1 filing on Wednesday, BlackRock announced that it will charge 25 basis points on net asset value, down from its previously disclosed fee of 30 basis points on Monday. The asset management giant is also offering a promotional rate of 12 basis points on the first $5 billion during the first 12 months after listing. ARK Invest and 21Shares also cut its fee, reducing it by 4 basis points to 0.21%. The firms are waiving the fee entirely for the first six months or the first $1 billion in assets, whichever comes first.
These fee reductions follow similar moves by other ETF providers, including Bitwise and Valkyrie, which announced lower fees on Tuesday. Bitwise, a crypto native fund manager, lowered its initial 0.24% charge to 0.20%. Valkyrie is now charging 0.49%, WisdomTree 0.3%, and Fidelity 0.25%. Invesco and Galaxy have also cut their planned fees to 0.39%.
The SEC approved all ETFs at the same time on Jan. 10, after a few days of dramatic developments leading up to the final deadline day. The SEC’s X account was hacked on Tuesday and falsely announced the ETF approval, although there was speculation that the tweet was already drafted to be published today.
While BlackRock, ARK Invest, Bitwise and Valkyrie are cutting fees, Grayscale stands out with a higher fee of 1.5%. Its Grayscale Bitcoin Trust (GBTC) currently has over $28.5B in assets under management, although the introduction of other providers with lower fee structure could see a competition over market share in the highly anticipated Bitcoin ETF market.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
