In recent developments, key financial entities including Valkyrie, WisdomTree, BlackRock, Invesco and VanEck have submitted updates deposits for a Spot Bitcoin ETF. The filings exposed previously undisclosed fees, sparking an atmosphere of competition within the cryptocurrency exchange-traded fund (ETF) industry.
Senior ETF Analyst at Bloomberg Eric Balchunas shared insights on fee competition, specifically highlighting the ongoing battle between BlackRock and ARK Invest. He expressed surprise at the disclosed fees for BlackRock’s Bitcoin ETF, saying it would be 0.30%, according to the recently filed form.
The expert noted that the fees were much more economical than his initial prediction, suggesting that the competitive landscape has significantly intensified for other market players.
In response to BlackRock’s announcement, ARK Invest quickly adjusted its fees to 0.25%, increasing the intensity of fee competition. VanEck also entered the fray with a competitive 0.25% fee, knocking Fidelity’s 0.39% out of its position as the cheapest of the group.
Does it matter?
Balchunas also discussed temporary fee waivers in Bitcoin ETFs, noting that historically, these have not significantly influenced investor decisions. However, he speculated that given the similar nature of these ETFs, fees could become a more critical factor for investors.
The final documents have been submitted and the SEC will now decide whether to approve the forms, with the possibility of negotiations starting the following day. The industry is eagerly awaiting the SEC’s decision, with the deadline set for Wednesday, January 10.