Two other asset managers have temporarily waived fees for their spot Bitcoin ETFs, Bloomberg ETF analyst James Seyffart said on January 9.
Seyffart indicated that WisdomTree would waive its fees for 6 months or for the first $1 billion in assets, reducing the fee from 0.30% to zero during the waiver period.
It also indicated that Valkyrie Investments would waive its fees for 3 months, reducing its fees from 0.49% to zero during the waiver period.
Each company’s latest S-1 filing indicates that its waiver applies to sponsor fees. This term describes the fees that the sponsor — in this case Valkyrie or WisdomTree — receives compensation from the ETF Trust for services rendered under the Trust Agreement and for other services paid by the Sponsor.
These waivers also align Valkyrie and WisdomTree with four other ETF candidates that have also waived fees: Bitwise, Ark Invest, Invesco and BlackRock (iShares). All but one of these companies intend to waive fees entirely during the waiver period: only BlackRock maintains a 0.20% fee after the waiver. Five other spot Bitcoin ETF applicants have not announced any waivers.
The “fee war” also reduced regular fees
As well as introducing waivers, various companies have reduced their regular fees in recent days through competitive filings in what has been called a “fee war”.
Blackrock, Ark Invest, WisdomTree and Invesco each reduced or clarified their fees in their Jan. 8 filings. Grayscale, although its fees are considerably higher than others, also reduced its fees to 1.5% from 2% on January 8.
Many sources expect the U.S. Securities and Exchange Commission (SEC) to approve a spot Bitcoin ETF tomorrow, January 10, with trading to begin in the coming days. Although approval is not certain, the SEC has engaged extensively with the applicants and is expected to rule on Ark Invest’s application tomorrow.
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