Franklin Templeton Sets Record-low Fee for Spot Bitcoin ETF
In a significant move, Franklin Templeton, the issuer of the Spot Bitcoin ETF, has announced a reduction in its sponsor fee, making it the lowest among its competitors. According to the filing submitted on January 12, the firm has decided to lower the annual fee from 0.29% to 0.19%.
Fee Reduction and Waiver
In the filing, Franklin Templeton proposed a reduction of 10 basis points in the sponsor’s fee and introduced a fee waiver for the next six months. From January 12 to August 2, no charges will be applicable on the ETF for the first $10 billion of the fund’s assets. This move positions Franklin Templeton as a strong competitor against major players such as Grayscale, BlackRock, and ARK 21 Shares.
Comparison with Competitors
Previously, Bitwise offered the cheapest fee of 0.20%, which applied after the initial six-month waiver period. ARK 21Shares, VanEck, and Fidelity also offer attractive fees of 0.25%. On the other hand, Grayscale has the highest sponsor fee of 1.5%, down from its proposed rate of 2%. Wisdomtree plans to charge a post-waiver fee of 0.30%, while Invesco and Valkyrie have entered the Bitcoin ETF fee race with annual fees of 0.39% and 0.49% respectively.
Hot Take: Franklin Templeton Sets New Standard for Bitcoin ETF Fees
Franklin Templeton’s decision to reduce its sponsor fee for the Spot Bitcoin ETF sets a new standard in terms of affordability for investors. With its record-low fee and fee waiver for the first $10 billion of assets, Franklin Templeton is positioning itself as a strong competitor in the Bitcoin ETF market. This move not only benefits investors by providing a more cost-effective option but also puts pressure on other major players to reevaluate their fee structures. As the crypto industry continues to grow, it is likely that we will see more ETF issuers adjusting their fees to remain competitive and attract investors.
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