As the race for a spot Bitcoin ETF heats up, BlackRock and Ark Investments have lowered their fund management fees in their latest SEC filings. These updates to the S-1 documents highlight the intense competition among companies even before the SEC’s decision on ETFs.
BlackRock reduced its iShares Bitcoin Trust fee from 0.30% to 0.25%, aiming to capture the largest share of the growing market. Ark Investments, in partnership with 21Shares, also cut its fee from 0.25% to 0.21%, matching BlackRock’s competitive move.
The fee war preceding the approval of spot Bitcoin ETFs illustrates the fierce competition among issuers, who are eager to secure the largest slice of the anticipated capital inflows with the lowest possible management fees.
The crypto world awaits the SEC’s decision on spot Bitcoin ETFs, monitoring strategic adjustments in management fees, waivers, and custodial relationships concerning Bitcoin storage.
In this context, Bitwise’s spot Bitcoin ETF, to be listed as BITB, will operate with zero fund management fee for six months or until the fund reaches $1 billion in assets, after which a 0.20% fee will apply. Fidelity also announced its fee structure, with its FBTC ETF operating without a transaction fee until July 31, 2024, followed by a 0.25% fee thereafter.