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Bitcoin ETF Fee Wars: BlackRock, Ark Lower Fees Ahead of Approval

Published 10/01/2024, 19:29
Updated 10/01/2024, 19:45
© Reuters.  Bitcoin ETF Fee Wars: BlackRock, Ark Lower Fees Ahead of Approval
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Coin Edition -

  • BlackRock and Ark Investment slash their spot Bitcoin ETF fees.
  • Updated filings show BlackRock cut its fees from 0.30% to 0.25%.
  • Ark Investment will now charge 0.21% on its ETF, lower than the 0.25% disclosed on Tuesday.

BlackRock and Ark Investment, two of the financial institutions in the spot Bitcoin Exchange-Traded Fund (ETF) race, have lowered their fees, a Bloomberg report details.

According to that report, updated filings by the two managers with the US Securities and Exchange Commission (SEC) evidence these changes to their ETFs. BlackRock now plans to charge 0.25% on its ETF, significantly lower than the 0.30% earlier announced, the updated filing shows.

Furthermore, the asset manager also lowered its introductory offer on its spot Bitcoin ETF. Instead of the 0.20% fee offer, investors will now pay a 0.12% fee in the first 12 months or for the first $5 billion in assets.

Meanwhile, Ark Investment reduced the fee on its ETF by four basis points to 0.21%, the updated filing reveals. On Tuesday, the asset manager disclosed a proposed fee of 0.25% on the fund. Invesco and Galaxy also reduced the fees they plan to charge on their ETF to 0.39% from the earlier 0.59%.

Indeed, the ETF fee war comes as the cryptocurrency market awaits the SEC’s decision on the ETF applications. As noted by Bloomberg, the Wall Street regulator is set to make a decision on some of the applications later on Wednesday.

Earlier, the crypto market was thrown into a volatile mood following a false post on the SEC’s X (formerly Twitter). The post, which caused a raucous response, claimed the regulator had green-lighted the spot Bitcoin ETF applications. As a result, Bitcoin’s price rose before it later dipped after the mischief was cleared.

The post Bitcoin ETF Fee Wars: BlackRock, Ark Lower Fees Ahead of Approval appeared first on Coin Edition.

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