Bitcoin Spot ETF fee war begins, issuers amend S-1 filings with lower sponsorship fees
Issuers of potential spot Bitcoin ETFs awaiting SEC approval have filed amendments to their S-1 forms that include competitive new fee rates - some as low as 0.24%
Anticipation of the United States Securities and Exchange Commission (SEC) decision regarding Bitcoin ( BTC ) exchange-traded funds (ETFs) continues as many applicants file amendments to their final S-1 forms
Valkyrie was the first company to file an amendment to its final S-1, followed by WisdomTree, BlackRock, VanEck, Invesco and Galaxy, Grayscale, and ARK Invest and 21Shares.
Among the amendments, many applicants also include lower fees, raising the bar for competitiveness between different ETF offerings.
The lowest Sponsor Fee for an ETF currently filed is from Bitwise, with no fees for the first six months and the first $1 billion in assets, followed by a 0.24% fee. Followed by ARK Invest and 21Shares which also do not include fees for the first six months or assets up to $1 billion, after which they will apply a fee of 0.25%.
Bloomberg market analyst Eric Balchunas called the drop in ARK and 21Share fees from 0.80% to 0.25% “stunning.” Balchunas said, “the cost war is intense, but it's a different level.”
VanEck lists a 0.25% fee, Franklin a 0.29% fee and Fidelity a 0.39% fee.
Global asset manager BlackRock sets fees for the iShare ETF at 0.20% for the first 12 months or up to the first $5 billion, then increases it to 0.30% as an ongoing fee.
