Top investment managers such as BlackRock, ARK Invest, VanEck, and Bitwise have recently submitted revised S-1 forms to reduce their spot Bitcoin exchange-traded fund (ETF) management fees, as per the latest updates from the U.S. Securities and Exchange Commission (SEC).
The management fees charged by these issuers are as follows: BlackRock imposes a 0.2% management fee during the first year or until the ETF reaches $5 billion in assets, after which the fee rises to 0.3%. Ark Invest does not charge any management fees for the first six months or until the ETF reaches $1 billion in assets, after which a 0.25% fee is applied. Bitwise also waives the fee for the first six months or up to the first $1 billion in assets, after which a 0.24% management fee is levied. VanEck charges a flat rate of 0.25%.
Other firms such as Franklin Templeton, Fidelity, WisdomTree, Valkyrie, and Hashdex charge fees of 0.29%, 0.39%, 0.5%, 0.8%, and 0.9%, respectively. The Invesco & Galaxy fund does not charge any fees for the first six months and the first $5 billion, after which a 0.5% fee is applied. Grayscale charges the highest fee at 1.5%.
Interestingly, BlackRock, VanEck, Ark Invest, and Bitwise aim to offer ETF management fees that are lower than the general forecast of ETF analyst Eric Balchunas. Among the applicants, only Hashdex still needs to update its filings. However, Hashdex is unique as it’s seeking to convert its futures Bitcoin ETF to a spot Bitcoin ETF.
VanEck’s Bitcoin ETF, while not the cheapest, will donate 5% of profits to Bitcoin Core Development. Gabor Gurbacs, VanEck’s digital asset strategist, stated in a tweet that sharing a portion of Bitcoin ETF revenues with Bitcoin core developers is a great approach. He emphasized that it’s better to share revenues with the Bitcoin ecosystem and reinvest in Bitcoin companies than waiving fees for a few months, as Bitcoin core development isn’t free.
There is speculation that this intense competition among spot Bitcoin ETF issuers to lower fees is a positive sign for approval odds. According to Duo Nine, a crypto educator and technical analyst, these amendments suggest a spot Bitcoin ETF will be launched soon.
With the final spot Bitcoin ETF filings in hand, the SEC now has enough basis to decide whether to approve them. If approved, trading could commence within the next few days.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Duo Nine, Eric Balchunas, James Seyffart, Gabor Gurbacs |
| Companies | VanEck, Bitwise, U.S. Securities and Exchange Commission, ARK Invest, BlackRock |
| Currencies | Bitcoin |
| Securities | None |
