According to CoinDesk, several bitcoin ETF issuers have reduced their planned fees in anticipation of a fierce competition to accumulate assets if their products are approved this week. Valkyrie cut its fee nearly in half to 0.49% from 0.8%, and it will charge nothing for three months. Invesco also lowered its fee by 20 basis points to 0.39%, while Bitwise, which was already the lowest-cost option at 0.24%, decided to go down even further, to 0.20%. WisdomTree reduced its fee by 20 basis points, to 0.30%. With these changes, nine applicants will potentially charge investors less than 0.5% of the net asset value of the fund.
However, Grayscale, which already offers a bitcoin investment product, is standing firm with its far-costlier fee of 1.5%. Experts suggest that the crypto asset manager may make changes to its fee structure as time goes on. The Grayscale Bitcoin Trust (GBTC), which the company wants to convert into an ETF, currently charges 2%, so 1.5% is a reduction. Grayscale may justify its high price due to its significant competitive advantage over others because of its size, with more than $27 billion of assets under management lined up even before potential approval and launch, while other issuers are starting at zero.
