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Spot Bitcoin ETF competition intensifies as management fees are slashed, with BlackRock and Ark Investments recently reducing their fees in the latest revisions to their ETF applications submitted to the U.S. Securities and Exchange Commission (SEC). The updated S-1 filings to the SEC show that companies are fiercely competing even before the agency’s decision on ETFs.
BlackRock and Ark 21Shares Cut Fund Management Fees
This week, key ETF issuers in the U.S. made various moves and updated their S-1 filings to the SEC ahead of the official decision. Amid rising speculation about spot ETFs, BlackRock and Ark Investments managed to attract the crypto world’s attention with the updated versions of their S-1 filings submitted to the SEC.
BlackRock has reduced the fund management fee for its iShares Bitcoin Trust from 0.30% to 0.25% in its latest updated S-1 filing. As the world’s largest asset management company, this move aims to capture the largest share in this growing market. In parallel with BlackRock’s move, Ark Investments, in collaboration with 21Shares, reduced its previously set fund management fee from 0.25% to 0.21%.
The intensifying battle over fund management fees ahead of the approval of spot Bitcoin ETFs indicates that companies are in fierce competition. Issuers want to capture the largest share of the expected capital inflows with the lowest and most competitive fund management fees.
Strategic Adjustments by Issuers for Spot Bitcoin ETFs
The SEC is expected to announce its official decision today on applications for a Bitcoin product (ETP) to be traded on the stock exchange. Optimism for the U.S.’s first spot Bitcoin ETF continues despite a temporary setback following a hack of the SEC’s official account and a fake ETF approval announcement.
As the crypto world awaits the SEC’s decision on spot Bitcoin ETFs, it continues to monitor strategic adjustments in fund management fees, waivers, and custody relations concerning Bitcoin storage.
In this context, Bitwise’s spot Bitcoin ETF, which will be listed on the exchange with the ticker BITB, will operate with zero fund management fees for six months or until the fund reaches $1 billion in assets, after which a 0.20% fund management fee will be applied. Meanwhile, Fidelity is also among the issuers announcing fund management fees. The company’s ETF, which will be listed on the exchange with the ticker FBTC, will operate without a transaction fee until July 31, 2024, after which a 0.25% transaction fee will be applied.
