Bitcoin

Counting your chickens before they&#39;ve hatched has long been frowned upon in folklore. Nonetheless, this hasn&#39;t stopped <a href="https://www.blockhead.co/tag/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> ETF applicants from discounting their fees to undercut competition, on the assumption that approval will be granted.Bloomberg predicts a 90% chance of <a href="https://www.bloomberg.com/news/articles/2023-10-14/grayscale-s-bitcoin-etf-push-what-s-next-after-sec-doesn-t-appeal-court-ruling?ref&#61;blockhead.co#xj4y7vzkg" rel="noopener noreferrer nofollow">approval</a> by 10 January, which is tomorrow at the time of writing.Submitting amendments to their Bitcoin ETF registrations to the <a href="https://www.blockhead.co/tag/sec" rel="noopener noreferrer nofollow">SEC</a>, applicants disclosed their proposed fee structures.Bitwise Bitcoin ETF, ARK 21Shares Bitcoin ETF and Invesco Galaxy ETF are launching with a lowballing fee of just 0%.<a href="https://www.blockhead.co/tag/blackrock" rel="noopener noreferrer nofollow">BlackRock</a>, the OG Bitcoin ETF applicant, proposed a fee of just 0.20% on the first $5 billion and 0.30% thereafter for its iShares Bitcoin Trust.WisdomTree is placing a 0.5% fee on its trust whilst VanEck will impose a 0.25%. VanEck has also pledged 5% of its profits from the Bitcoin ETF to core developers at Brink.An initial $10,000 donation to Brink was also made by VanEck to support its work.&#34;Your tireless dedication to decentralization and innovation is the cornerstone of the Bitcoin ecosystem, and we&#39;re here to support it—more details to come,&#34; said VanEck.Issuers charge these fees for services including buying and storing assets. Investors incur the fee which is deducted from the fund&#39;s assets, ultimately impacting their final returns.Custodia Bank CEO Caitlin Long warns that issuers charging lower fees to manage a fund could be hiding other risks. Securities lending is a common practice in no-fee funds, which poses additional risk for investors.Low fees might attract traders and thus boost liquidity but issuers could discuss reduced fees with custodians, which could impact entities such as <a href="https://www.blockhead.co/tag/coinbase" rel="noopener noreferrer nofollow">Coinbase</a>, which is tasked with holding Bitcoin as collateral for ETF shares.Subscribe to Blockhead&#39;s daily newsletter for <a href="https://www.blockhead.co/#/portal/signup" rel="noopener noreferrer nofollow">FREE </a>and stay in the loop on digital assets. Follow our <a href="https://twitter.com/blockhead_co" rel="noopener noreferrer nofollow">X</a> and <a href="https://t.me/blockhead_co" rel="noopener noreferrer nofollow">Telegram </a>for our latest updates too!

Bitcoin ETF Fee Competition Intensifies Ahead of Approval

Blockhead

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