Spot bitcoin ETF issuers compete on fees for market share
· CNA · Join:A raft of investment managers launched the first U.S. spot bitcoin exchange-traded funds (ETF) Jan. 11, in a milestone for the cryptocurrency industry that kicked off a fierce competition for market share.
The U.S. Securities and Exchange Commission approved 11 applications for spot bitcoin ETFs from BlackRock , VanEck, Ark Investments/21Shares and Bitwise, among others, on Jan. 10 after a decade-long tussle with the digital asset industry.
Most of the ETFs significantly undercut the average market rate for U.S. ETFs, which is 0.54 per cent, according to Morningstar, and several issuers have already slashed fees multiple times. Many are also offering to completely waive fees for a certain period of time, or until their product breaches a certain value of assets under management.
Here's where the fees stand for each of the spot bitcoin ETFs that are currently trading:
Company ETF Fee after Notes
Fee waiver
disclosed
Franklin Co says it
Templeton Franklin 0.19 per cent 0 per cent will waive
Templeton fees on
Digital first $10
Holdings bln in
Trust
.K>
Bitwise Asset 0.20 per cent
Management Bitwise 0 per cent Co says it
Bitcoin will waive
ETF fees on the
first $1 bln
in assets
0.21 per cent
Ark ARK 0 per cent Will waive
Investments 21Shares all fees for
and 21Shares Bitcoin six months
ETF or first $1
bln in
assets
BlackRock iShares 0.25 per cent 0.12 per cent Co says fees
Bitcoin will be
Trust 0.12 per cent for
the first $5
bln in
assets for
12 months
0.25 per cent
VanEck VanEck N/A
Bitcoin
Trust
Co will
Valkyrie Valkyrie 0.25 per cent 0 per cent waive fee
Digital Bitcoin for 3 months
Assets Fund
0 per cent
Fidelity Wise 0.25 per cent Co will
Origin waive fee
Bitcoin until July
Trust 31, 2024
WisdomTree Co will wave
WisdomTre 0.30 per cent 0 per cent fee for six
e Bitcoin months on
Trust first $1 bln
in assets
Invesco and 0.39 per cent
Galaxy Invesco 0 per cent Will waive
Digital Galaxy on first $5
Bitcoin bln in
ETF assets for
six months
Grayscale 1.5 per cent N/A Converted
Investments Grayscale from trust
Bitcoin to ETF; fee
Trust for trust
was 2 per cent
Source: Regulatory filings with the U.S. SEC