Spot Bitcoin ETF Fee Wars Intensify
Several firms have recently reduced their proposed fees for spot Bitcoin ETFs in response to the ongoing industry competition and the anticipation surrounding the SEC’s decision.
Fidelity has lowered its fees from 0.39% to 0.25% and is offering a fee waiver of 0% through July 31, 2024. Bitwise is charging a fee of 0% for the first six months and the first $1 billion in assets, followed by a 0.20% fee.
ARK Invest and 21Shares have also slashed their fees from 0.25% to 0.21%. BlackRock has adjusted its sponsor fee to 0.25%, down from 0.3%. WisdomTree reduced its fee from 0.5% to 0.30%, and Galaxy Invesco lowered its fee from 0.59% to 0.39%.
Valkyrie introduced a three-month fee waiver, reducing its fee from 0.80% to 0.49%. Hashdex maintained its sponsor fee at 0.90%, and Grayscale lowered its fee from 2% on January 8 to 1.5%.
Industry Sentiment
Bloomberg senior ETF analyst Eric Balchunas described the current situation as compressing two years’ worth of fee wars into just a couple of days, creating a favorable environment for investors.
Hot Take: Spot Bitcoin ETF Fees Reduced in Intense Competition
As the deadline for the SEC’s decision on spot Bitcoin ETFs approaches, several firms have reduced their proposed fees in an effort to gain a competitive edge. Fidelity, Bitwise, ARK Invest, BlackRock, WisdomTree, Galaxy Invesco, Valkyrie, Hashdex, and Grayscale have all made adjustments to their fee structures. The fee reductions range from 0.39% to as low as 0%, with some firms also offering fee waivers. This fee war has created a favorable environment for investors, but it’s important to note that these fees may still be subject to further adjustments before being finalized.
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