Bitcoin ETF

Spot

Grayscale Bitcoin Trust

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 Spot Bitcoin ETF applicants revealed planned fees for their products as a war for market share breaks out even before the new investment vehicles are approved for sale. 
 Multiple fund managers that have applied to launch Bitcoin ETFs (exchange-traded funds) revealed their fees in forms submitted to the Securities and Exchange Commission (SEC). 
 And the players have come out slugging with a decision by the regulator expected on at least one application by tomorrow. 
 Bitwise is waiving fees for the first six months or until it reaches $1 billion in assets with a subsequent charge of 0.24%. 
 Ark/21Shares will also waive fees for the first six months or until the fund hits $1 billion in assets, after which it will charge 0.25%. 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 I spoke too soon re: low-water mark! 
 Ark and 21Shares are going 0.25% and *NO FEE* for the first six months or until $1 billion in assets 
 these are very, very low numbers https://t.co/zjCRNPJpts pic.twitter.com/NrifnrAAWe 
 — Katie Greifeld (@kgreifeld) January 8, 2024
 </blockquote> 
 
 BlackRock has also disclosed a 0.2% fee for the first year or until it hits $5 billion in assets, before increasing its charge to 0.30%. 
 According to Bloomberg ETF analyst Eric Balchunas, any ETF applicant whose fees are higher than BlackRock’s will have a challenge competing in the market. 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Damn, the fee for BlackRock’s Bitcoin ETF will be 0.30% as per their just filed S-1. This is much cheaper than I predicted. Life just got a LOT tougher for everyone else. The ETF Terrordome is no joke. pic.twitter.com/RZrfO8x61s 
 — Eric Balchunas (@EricBalchunas) January 8, 2024
 </blockquote> 
 
 “BlackRock at 30bps is a potential instant destroyer of anyone much higher,” Balchunas added. 
 VanEck has announced a fixed fee of 0.25%, Fidelity’s is set at 0.39% while Invesco/Galaxy is at 0.59%. The Invesco/Galaxy ETF has a zero-fee structure during the first six months or until the product has $5 billion in assets. 
 Grayscale has the highest fee of 1.5%. According to analysts, the digital asset manager has a head start with Grayscale Bitcoin Trust (GBTC) holding about $27 billion of BTC and volumes approaching $500M daily. However, the high fee might still be a deterrent. 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 $GBTC traded close to half a billion today, which is more than 99% of the 3000 current ETFs, and reminder that they are bringing a (volume) gun to a knife fight if they launch with everyone else. That said, the 1.5% fee will act as a repellent. Another fascinating sub-plot. pic.twitter.com/506EG3PR7t 
 — Eric Balchunas (@EricBalchunas) January 8, 2024
 </blockquote> 
 
 <h2 id="battle-for-market-share-amid-looming-spot-btc-etf-approvals">Battle for Market Share Amid Looming Spot BTC ETF Approvals</h2> 
 According to a VanEck report, flows into spot Bitcoin ETFs will reach $1 billion within a few days after approval, rising to $2.4 billion during the first quarter of 2024. 
 All eyes are now on the SEC to determine whether the first spot Bitcoin ETF will launch in the US this week. 
 <h3 id="also-read">Also Read</h3> 
 <ul> 
 <li>Grayscale And Ark Invest Among Latest Fund Managers To File 8-A Forms As Spot Bitcoin ETFs Inch Closer To Possible Approval</li> 
 <li>Bitcoin ETF May Get SEC Green Light Today As Bitcoin Minetrix Presale Blasts Past $7.5m</li> 
 <li>BitMEX Founder Arthur Hayes And Strategist Peter Schiff Warn That A Crypto Crash Might Follow Bitcoin ETF Approvals</li> 
 </ul> 
 Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/bitcoin-etf-fee-war-breaks-out-as-competitors-prepare-to-slug-it-out-for-market-share-tbt76055.html">https://thebittimes.com/bitcoin-etf-fee-war-breaks-out-as-competitors-prepare-to-slug-it-out-for-market-share-tbt76055.html</a>
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Bitcoin ETF Fee War Breaks Out As Competitors Prepare To Slug It Out For Market Share

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