BlackRock and Fidelity, along with other investment firms, have disclosed their fee structures for the anticipated spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs are awaiting approval from the Securities and Exchange Commission, and the industry is closely watching the developments.
BlackRock has outlined a competitive fee structure in its final S-1 filing, starting at 20 basis points for the first 12 months or until the fund reaches $5 billion in assets. After this point, the fee will increase to 30 basis points. This fee is significantly lower than the initially estimated 0.39% by Bloomberg Intelligence’s ETF analyst James Seyffart.
Fidelity has set its Bitcoin ETF fees at the predicted 0.39%, in line with the competitive landscape where up to 13 ETFs are expected to be listed in the U.S. Setting attractive fees is a crucial strategy for these providers to stand out in the market.
Invesco and Galaxy have opted to waive their fees entirely for the first six months or until their fund reaches $5 billion in assets. Afterward, a fee of 0.59% will be applicable. This mirrors the strategy employed by Cathie Wood’s ARK and its custodian 21Shares, who are also waiving fees for the first six months or until they reach $1 billion in assets, after which a fee of 0.25% will be charged.
VanEck has entered the competition with a competitive fee of 0.25% for its ETF, while Valkyrie has set a fee of 0.8% on the higher end.
Impact of Bitcoin ETFs and broader crypto market
The anticipation for these spot Bitcoin ETFs has had a positive impact on the crypto market, with Bitcoin’s price approaching $45,000, marking a 1.8% increase in the last 24 hours. At present, BTC is trading at $44,874.
The move to launch a spot Bitcoin ETF is not limited to BlackRock, as the firm has also shown interest in Ethereum. This diversification indicates a growing interest and acceptance of cryptocurrencies among mainstream investment firms.
The introduction of these ETFs marks a crucial moment for the crypto industry, providing traditional investors with a regulated and familiar way to gain exposure to Bitcoin. The competitive fee structures reflect the eagerness of these investment giants to establish a foothold in the growing crypto market. As the industry awaits the SEC’s decision, these developments represent a significant step toward the mainstream adoption of cryptocurrencies.
