Wed, July 17

BlackRock and ARK 21Shares Slash Spot Bitcoin ETF Fees

BlackRock's Bitcoin ETF Surpasses MicroStrategy's Holdings Bitcoin News
  • The crypto industry is expecting the SEC to approve a spot bitcoin ETF as soon as today.
  • BlackRock said in a fresh S-1 filing on Wednesday that it would charge 25 basis points.

Both BlackRock and ARK 21Shares have reduced the fees for their prospective exchange-traded funds (ETFs), following other competitors who announced cutbacks yesterday. The crypto industry is expecting the United States SEC to approve a spot bitcoin ETF as soon as today.

After revealing a fee of 30 basis points on Monday, BlackRock said in a fresh S-1 filing on Wednesday that it would charge 25 basis points on net asset value. A promotional rate of 12 basis points is being offered on the first $5 billion during the first twelve months of the asset-management giant’s debut.

Gaining Edge Over Rivals

Following an earlier announcement that it would charge 0.25%, ARK 21Shares also made a cut, bringing it down to 0.21%. For the first six months or $1 billion in assets, whichever occurs first, the fee will not be charged by the businesses at all.

Bitwise and Valkyrie, other two competitors, both announced price reductions yesterday; today’s reductions follow suit. Bitwise still has the lowest charge, even with today’s decrease.

In Tuesday’s round, the fund manager cut its starting price from 0.24% to 0.20%. Fidelity currently charges 0.25%, WisdomTree 0.3%, and Valkyrie 0.49%. The planned fees were reduced by Invesco and Galaxy to 0.39 percent.

Various providers will compete for market share, using fee structure as an edge, as the SEC is anticipated to approve many ETFs simultaneously.

All indications are pointing toward a decision being announced today, despite yesterday’s disruption to the SEC’s clearance of a spot bitcoin ETF due to a hack of its twitter account and the release of a fraudulent approval tweet.

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