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 management fee of 0.2% during the first year or until the ETF reaches $5 billion in assets. After this threshold, the fee increases to 0.3%.
- Ark Invest does not charge any management fees for the first six months or until the ETF hits $1 billion in assets. After that, a fee of 0.25% is applied.
- Bitwise waives the fee for the first six months or up to the first $1 billion in assets. After that, a management fee of 0.24% is levied.
- VanEck charges a flat rate of 0.25%.
- Franklin Templeton, Fidelity, WisdomTree, Valkyrie, and Hashdex offer 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 this period, a fee of 0.5% is applied.
- Grayscale charges 1.5%, making it the most expensive option.
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, Bloomberg analyst James Seyffart noted that Hashdex differs from the rest as it’s seeking to convert its futures Bitcoin ETF to a spot Bitcoin ETF.
While VanEck’s Bitcoin ETF isn’t the cheapest, 5% of profits will be donated to Bitcoin Core Development. Gabor Gurbacs, VanEck’s digital asset strategist, reminded in a tweet: “VanEck’s approach to share a portion of Bitcoin ETF revenues with Bitcoin core developers is great. It’s much better to share revenues with the Bitcoin ecosystem and re-investing in Bitcoin companies than waiving fees for a few months. Bitcoin core development isn’t free.”
There is a growing belief 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 has enough basis to decide whether to approve them. If approved, trading could begin 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 | Valkyrie, Bloomberg Intelligence, VanEck, Franklin Templeton, Bitwise, U.S. Securities and Exchange Commission, Invesco & Galaxy fund, ARK Invest, WisdomTree, Hashdex, Grayscale, Fidelity, BlackRock, SEC.gov |
| Currencies | Bitcoin |
| Securities | None |
