Leading investment firms BlackRock and Fidelity, along with other contenders, have disclosed their fee structures for the much-anticipated spot Bitcoin exchange-traded funds (ETFs) in the United States, according to a CoinDesk report. This move comes as the crypto industry eagerly awaits the Securities and Exchange Commission’s approval for these ETFs.
BlackRock, in its final S-1 filing, announced a competitive fee structure starting at 20 basis points for the first 12 months or until the fund reaches $5 billion in assets. After this threshold, the fee will increase to 30 basis points. This fee is notably lower than the 0.39% initially predicted by Bloomberg Intelligence’s ETF analyst James Seyffart.
Fidelity, aligning with Seyffart’s predictions, has set its Bitcoin ETF fees at 0.39%. This announcement comes amid a competitive landscape where as many as 13 ETFs are expected to be listed in the U.S. soon. In this scenario, setting attractive fees is a crucial strategy for these providers to differentiate themselves from rivals.
In an aggressive move to capture market share, Invesco and Galaxy have decided to waive their fees entirely for the first six months or until their fund reaches $5 billion in assets. Post this period, a fee of 0.59% will be applicable. This strategy mirrors the approach taken by Cathie Wood’s ARK and its custodian 21Shares, who are also waiving fees for the first six months or until they reach $1 billion in assets, after which a fee of 0.25% will be charged.
VanEck has also joined the fray with a competitive fee of 0.25% for its ETF. On the higher end, Valkyrie has set its fee at 0.8%.
Impact of Bitcoin ETFs and broader crypto market
The anticipation surrounding these spot Bitcoin ETFs has positively impacted the crypto market, with Bitcoin’s price inching toward $45,000, marking a 1.8% increase in the last 24 hours. At the time of writing, BTC is trading at $44,874.
The move to launch a spot Bitcoin ETF is not isolated to BlackRock, which has also shown interest in Ethereum. This diversification indicates a growing interest and acceptance of cryptocurrencies among mainstream investment firms.
The introduction of these ETFs is a pivotal moment for the crypto industry, offering traditional investors a regulated and familiar way to gain exposure to Bitcoin. The competitive fee structures reflect the eagerness of these investment giants to establish a foothold in the burgeoning crypto market. As the industry awaits the SEC’s decision, these developments mark a significant step toward the mainstream adoption of cryptocurrencies.
