Fidelity Reduces Proposed Fee for Spot Bitcoin ETF to 0.25% Amidst Industry Fee Competition

Fidelity Reduces Proposed Fee for Bitcoin ETF

Fidelity has announced in a recent filing that it plans to lower the charge for its upcoming Bitcoin ETF to 0.25%. This is a significant decrease from the previously set fee of 0.39% that was announced on December 29. Additionally, Fidelity intends to waive this fee for market participants until the end of July, as stated in the latest filing.

Competition in the Market

U.S. companies competing to launch the initial spot Bitcoin ETFs are slashing fees ahead of anticipated approval from the Securities and Exchange Commission (SEC). Bitwise, WisdomTree, Invesco, and Valkyrie are among the asset managers that have aggressively reduced fees, as indicated in their recent filings.

Expected Approval and Trading Start Date

It is widely expected that spot Bitcoin ETFs will be approved by the US financial regulator soon, with trading likely to commence by January 11. Jan van Eck, CEO of VanEck, another firm applying for a spot Bitcoin ETF, anticipates that his company’s proposed fund will start trading on Thursday.

SEC Security Breach and Investigation

The SEC reported a security breach in its X account on January 9. A fraudulent tweet from the account claiming the approval of spot Bitcoin ETF applications led to a sudden drop in Bitcoin’s price. The SEC will conduct an internal investigation into potential market manipulation.

Optimism About ETF Decision Timeline

Despite the security breach, James Seyffart, a research analyst at Bloomberg Intelligence, remains optimistic about the ETF decision timeline. He expects potential approvals to proceed as planned, with trading possibly beginning on Thursday.

Hot Take: Fidelity Cuts Proposed Spot Bitcoin ETF Fee Amid Industry Competition

Fidelity has decided to reduce the proposed fee for its upcoming Bitcoin ETF, aiming to make it more competitive in the market. This move comes as other U.S. companies also slash fees in anticipation of SEC approval for spot Bitcoin ETFs. The expected approval and start of trading are drawing near, creating excitement in the crypto community. However, a recent security breach at the SEC’s X account raised concerns about potential market manipulation. Despite this setback, experts remain optimistic about the ETF decision timeline and foresee trading commencing as planned. The race for Bitcoin ETFs continues, with companies striving to offer attractive options to investors.