Grayscale Investments is taking a significant risk in the Bitcoin #etf race by planning to convert its $27 billion GBTC Bitcoin Trust into an ETF, with a fee of 1.5% upon conversion, down from the current 2%.
This move comes as a fee war breaks out among asset managers racing to launch the first U.S. spot #BTC ETFs, with several other providers, such as ARK Investment Management, Fidelity, and Invesco, also planning to charge fees of less than 1%.
Grayscale is facing competition from heavyweights like BlackRock, which plans to charge 0.3% for its #Bitcoin fund and just 0.2% for the first $5 billion of assets over the first year.
However, Grayscale and Ark Invest have some advantages in the race, as they have been trying to issue a Bitcoin spot #ETF for years and have significant assets and daily transactions under their belt.
Grayscale's Bitcoin Trust already handles more than $150 million in transactions a day, and Ark Invest can pour at least $100 million into its own ETF as soon as it's approved.
While Grayscale is taking a risk with its fee structure, Bitwise, another player in the Bitcoin ETF race, has claimed victory with unbeatable low fees.
The SEC is yet to approve the launch of the first U.S. spot Bitcoin ETFs, and the race is expected to intensify as the deadline approaches.
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