- Several issuers have cut fees for proposed bitcoin spot ETFs to be more competitive, with Bitwise emerging as the leader at 0.20%
- Industry experts say the fee cuts demonstrate how competitive this new ETF category will be, benefiting investors with lower costs
- Some firms held fees steady, willing to charge more based on their brand name and crypto expertise, as issuers jockey for first-mover advantage
The SEC is expected to make a decision on spot bitcoin ETFs this week. In anticipation, several issuers have lowered the fees for their proposed funds to be more competitive. This fee battle highlights the massive demand for bitcoin ETFs.
Lowering Fees to Win Investor Assets
Bitwise, WisdomTree, Invesco, and Valkyrie have all reduced the fees for their planned spot bitcoin ETFs in updated filings. Bitwise lowered its fee from 0.24% to 0.20%, emerging as the leader. WisdomTree dropped from 0.50% to 0.30%, while Invesco went from 0.59% to 0.39%. Valkyrie also became more competitive, reducing its fee from 0.80% to 0.49%.
The ETF Industry Reacts
Industry experts say the low fees show how competitive this new category will be. The price cuts are a clear win for investors, who will benefit from lower costs. With multiple issuers battling for assets, investors will have their choice of bitcoin ETFs with rock-bottom expenses.
Other Issuers’ Fees Hold Steady
Some firms held steady on their planned fees. BlackRock, Ark Invest, 21Shares, and others did not alter their fees, which range from 0.25% to 0.39%. Grayscale, charging a high 1.5%, also did not change its planned fee. These firms seem willing to charge more for their brand name and crypto expertise.
High Stakes for Issuers
The launch of bitcoin ETFs has been hotly anticipated for years. With the SEC likely approving spot bitcoin funds this week, issuers are positioning themselves to capture investor dollars. The competitive fee cuts show issuers are willing to sacrifice revenues to gain market share in this new product category. For issuers, gaining first-mover advantage may be worth the lower fees.
