Eleven issuers, including BlackRock, have submitted revised documents for Bitcoin spot ETFs to the U.S. Securities and Exchange Commission (SEC). Here is a summary of the fee structures for each issuer:
– Grayscale – 1.5% fee, ticker symbol GBTC
– Ark 21 Shares – Initially offered a 0% management fee to capture market share. After 6 months of ETF trading or when the fund exceeds $1 billion in assets, a 0.25% fee will be charged. Ticker symbol ARKB.
– iShares (BlackRock) – Initially charged a 0.2% management fee. After 12 months of ETF trading or when the fund exceeds $5 billion in assets, the fee will increase to 0.3%. Ticker symbol IBIT.
– Bitwise – Initially offered a 0% management fee. After 6 months of ETF trading or when the fund exceeds $1 billion in assets, a 0.24% fee will be charged. Ticker symbol BITB.
– VanEck – 0.25% fee, ticker symbol HODL.
– Wisdomtree – 0.50% fee, ticker symbol BTCW.
– Invesco Galaxy – Initially offered a 0% management fee. After 6 months of ETF trading or when the fund exceeds $5 billion in assets, a 0.59% fee will be charged. Ticker symbol BTCO.
– Fidelity – 0.39% fee, ticker symbol FBTC.
– Valkyrie – 0.8% fee, ticker symbol BRRR.
– Hashdex – 0.9% fee, ticker symbol DEFI.
– Franklin – 0.29% fee, ticker symbol EZBC.
Pando Asset Management and Global X have not submitted updated S-1 filings before the deadline.
Grayscale currently has the highest fee at 1.5%, which is seven times higher than BlackRock’s initial fee. However, Grayscale’s document includes a clause regarding fee waivers that has yet to be finalized. Analyst James Seyffart believes it wouldn’t be surprising to see Grayscale further reduce the fees for Bitcoin spot ETFs, as the fees of other issuers are significantly lower.
In addition to fee considerations, tax implications will also be an important factor for many investors. Analyst Eric Balchunas points out that Grayscale’s GBTC is more advantageous in terms of taxes.
Sui Chung, CEO of CF Benchmarks, a cryptocurrency index provider, also stated in a recent interview that low fees could create real pressure for cryptocurrency exchanges.
Nate Geraci, President of investment advisory firm The ETF Store, sees the fees announced by Bitcoin spot ETF issuers as a huge win for investors, as some previously accused these issuers of trying to make money. However, he also notes that low-fee Bitcoin spot ETFs will put real pressure on cryptocurrency exchanges, and with BlackRock, the world’s largest asset management company, entering the market with competitive fees, it could potentially become the new market leader.
Please note that Pando Asset Management and Global X have not submitted updated S-1 filings before the deadline.