According to the latest reports, it seems that BlackRock slashed the fee to 0.25% for a potential spot BTC ETF. Check out the latest reports about this below.
BlackRock makes new moves regarding spot BTC ETF
BlackRock has decreased the sponsor fee for its proposed Bitcoin ETF from 0.3% to 0.25% due to the increasing competition in the market.
The company has also lowered the temporary discount from 0.2% to 0.12% for the first $5 billion of assets in the initial 12 months post-launch. This information has been disclosed in the S-1 form that was filed today.
“LOWER: BlackRock has just cut the fee on its spot Bitcoin BTC -2.21% ETF to 0.25% (and 0.12% for the first $5b). They really going for the jugular here, looking to crush the others [before] they even born, just brutal.
ARK has also cut to 0.21%. Bitwise [currently] low at 0.20%. Terrordome life,” said Bloomberg ETF analyst Eric Balchunas on X.
Ark Invest/21Shares and Bitwise have both cut their fees for their competing products. Ark Invest/21Shares has reduced its fee from 0.25% to 0.21% and is offering zero fees for the first six months or until $1 billion in assets, according to its latest S-1 form.
Bitwise plans to offer the lowest fee of 0.2% and zero fees for the first six months or until the first $1 billion in assets. In addition, Fidelity has lowered its fee from 0.39% to 0.25% and is waiving the fee for market participants until July 31.
Multiple other competing issuers lowered their fees yesterday, too — with Valkyrie going from 0.80% to 0.49%, Invesco Galaxy from 0.59% to 0.39% and WisdomTree from 0.50% to 0.30%. Multiple providers are offering zero fees for a limited time, too.
Various U.S. contenders are competing to launch the first line of spot bitcoin ETFs. With the potential approval from the Securities and Exchange Commission looming, these contenders have been lowering their fees to attract the market, according to the latest notes coming from The Block.
The idea is that by offering low fees to attract market share in the early days, it could reap benefits in the future.
VanEck has estimated that spot bitcoin ETFs will see $1 billion in inflows in the first few days and $2.4 billion within a quarter. Galaxy has predicted inflows at $14 billion within the first year. Bitwise has anticipated a $72 billion market size within five years.
