Investment Managers Disclose Fees for Proposed Spot Bitcoin ETFs
A number of investment managers have revealed the fees they plan to charge for their proposed spot bitcoin exchange-traded funds (ETFs), bringing them one step closer to approval by the US Securities and Exchange Commission (SEC). BlackRock, VanEck, Ark Investments/21Shares, and Bitwise, among others, have submitted filings to the SEC indicating that they expect to offer fees below the average market rate for US ETFs.
A spot crypto ETF would track the market price of the underlying cryptocurrency asset, allowing investors to gain exposure to the token without having to purchase the currency. The anticipation of an approved spot bitcoin ETF has contributed to the recent surge in bitcoin’s value.
SEC Decision Expected Soon
The SEC, which has previously rejected all spot bitcoin ETF applications due to concerns about potential fraud, is expected to announce its decision on these proposals in the coming week.
Fees Disclosed by Companies
Here are the fees disclosed by the companies:
- BlackRock: 0.30% for the iShares Bitcoin Trust’s first $5 billion in assets for 12 months
- Grayscale Investments: 1.5% for the Grayscale Bitcoin Trust
- Fidelity Wise Origin Bitcoin Trust: 0.39%
- Ark Invest and 21Shares ARK: 0.25%, with a waiver on all fees for six months or the first $1 billion in Bitcoin assets
- VanEck: 0.25% for the VanEck Bitcoin Trust
- WisdomTree: 0.50% for the WisdomTree Bitcoin Trust
- Valkyrie Digital Assets: 0.80%, with a possibility of temporarily waiving the fee
- Invesco and Galaxy Digital: 0.59%, with a waiver on the first $5 billion in assets for six months
- Franklin Templeton Digital Holdings Trust: 0.29%
- Bitwise Asset Management: 0.24% for the Bitwise Bitcoin ETF
- Hashdex: 0.94% for its current bitcoin futures ETF, with plans to convert it into a spot bitcoin ETF
Hot Take: Lower Fees May Boost Adoption
The disclosed fees by investment managers for their proposed spot bitcoin ETFs are significantly below market expectations, which could attract more investors to these products. Lower fees may also contribute to the wider adoption of cryptocurrencies and increase mainstream interest in digital assets. If approved, spot bitcoin ETFs could provide a convenient and cost-effective way for investors to gain exposure to bitcoin without directly owning the currency.
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