- Fees for spot bitcoin ETFs vary widely, with Bitwise charging the lowest at 0.24% and Grayscale the highest at 1.5%.
- Grayscale has over $27 billion in assets giving it a huge advantage, but its high 1.5% fee may deter advisors and investors.
- With the SEC nearing approval, fees are critical for issuers to compete for America’s first bitcoin ETF, though Grayscale leads in assets.
Crypto native Bitwise is charging the lowest fee at 0.24% after a 6-month fee waiver. Ark, 21Shares, VanEck and Franklin are also on the low end at 0.25% and 0.29%.
The Middle Ground
BlackRock set its fee at a competitive 0.30%, lower than some expected. Fidelity is charging 0.39%, while Invesco and Galaxy chose 0.59%.
The High Side
Valkyrie and Hashdex are at the higher end, with fees of 0.80% and 0.90%. Grayscale stands out, charging 1.5% to convert its Bitcoin Trust into an ETF.
Grayscale’s Uphill Battle
While lower than the trust’s 2% fee, Grayscale’s 1.5% is unlikely to attract advisors, experts say. The average ETF fee is just 0.37%. But Grayscale boasts a huge advantage – over $27 billion in assets vs. zero for rivals.
Conclusion
With the SEC set to approve the first spot bitcoin ETFs, fees are critical to issuers’ competitiveness. While Grayscale leads in assets, its high fee could make it hard to attract investors. The battle for America’s first bitcoin ETF is on.
