Business News Report
January 10, 2024

BlackRock and Ark Investments Reduce Bitcoin ETF Fee to Intensify Market Competition

BlackRock and Ark Investments Slash Fees for Bitcoin ETFs, Intensifying Market Competition

Investment management companies BlackRock and Ark Investments reduced the fees associated with their planned spot Bitcoin exchange-traded funds (ETFs). BlackRock has adjusted its fee structure for the first 12 months or until the fund reaches $5 billion in assets, as per a new S-1 filing. The revised fee is now 0.25%, down from the previously set 0.30%.

Likewise, Ark Investments and 21Shares have reduced the fee to 0.21% from the previous 0.25% (with a reduced rate of 0.12% for the first $5 billion). Additionally, the company will waive the entire fee for the initial six months after the fund’s listing or until the assets reach $1 billion, whichever occurs first.

The potential ETF managers have initiated a competition over fees, preempting approval from the US Securities and Exchange Commission (SEC) for their investment vehicles. This underscores their eagerness to secure a share of the expected capital inflow.

Investment Firms Gear Up for Intense Competition

The SEC is anticipated to simultaneously approve multiple ETFs, leading to providers competing for market share, with the fee structure being a key battleground. Although, usually fees are one of the last details finalized before the launch of an ETF.

Recently, Valkyrie, Bitwise, Grayscale, Invesco, BlackRock, ARK 21Shares, VanEck and WisdomTree filed updated S-1 Forms with the SEC. In this, the asset managers outlined proposed fee structures for their respective entities.

BlackRock, VanEck, Ark Investments, 21Shares, Bitwise and others stated in filings that they anticipate offering rates significantly lower than the average market rate for ETFs. The proposed fees were notably lower than what analysts had expected and the range indicated by some issuers. As all the ETFs are expected to provide the same return, their fees will play a crucial role in attracting new assets. 

BlackRock and Ark Investments’ recent strategic adjustments, in anticipation of approval for spot Bitcoin ETFs, highlight each company’s ambition to take a leading position in the competitive race for market share.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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Alisa Davidson
Alisa Davidson

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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