Bitwise Lowers Fee for Bitcoin ETF to 0.20%
Bitwise has reduced the fee for its spot bitcoin exchange-traded fund (ETF) to 0.20%, making it the lowest fee among all current offerings. This update was mentioned in an amended S-1 filing submitted by Bitwise on Tuesday morning.
The Fee War Intensifies
The competition among spot bitcoin ETF applicants has intensified, with market participants speculating that the U.S. Securities and Exchange Commission (SEC) might approve the first ETF as early as Wednesday evening. If approved, trading could potentially begin on Thursday, according to Steven McClurg, co-founder and CIO of Valkyrie Investments.
Lowering Fees to Attract Investors
In response to the fierce competition, several ETF contenders have lowered their fees. Bitwise initially offered zero fees for the first six months or until reaching $1 billion in assets, followed by a 0.24% fee. However, they have now further reduced it to 0.20% after the initial discount.
Valkyrie, Invesco Galaxy, and WisdomTree are among the other issuers that have also lowered their fees in an effort to attract investors.
Anticipating Market Growth
Bitwise expects the market for spot bitcoin ETFs to reach approximately $72 billion within five years. Valkyrie anticipates up to $400 million flowing into its ETF within the first week and estimates that the entire market could reach up to $5 billion over the first few weeks of trading.
Hot Take: Spot Bitcoin ETFs Trigger Fee War
The race for approval of spot bitcoin exchange-traded funds (ETFs) has ignited a fee war among applicants. Bitwise has emerged as the frontrunner by lowering its fee to 0.20%, the lowest among all current offerings. This move is aimed at attracting investors and gaining a competitive edge in the market.
Other issuers, including Valkyrie, Invesco Galaxy, and WisdomTree, have also reduced their fees in response to the intense competition. The anticipation of ETF approval has led to optimistic projections for market growth, with estimates ranging from $72 billion within five years to billions flowing into individual ETFs within the first few weeks of trading.
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