Lowering the costs for their planned spot bitcoin exchange-traded funds (ETFs) on Wednesday, BlackRock (BLK.N) and Ark Investment Management aimed to undercut almost a dozen other rivals vying to introduce similar investment vehicles.
The cost for BlackRock’s iShares Bitcoin Trust would be 0.25%, as opposed to the previous fee of 0.30%. The ARK 21Shares Bitcoin ETF cost was reduced from 0.25% to 0.21%.
Even before the U.S. Securities and Exchange Commission approves such investment vehicles, aspirant ETF managers have begun an unprecedented fee battle, demonstrating how desperate they are to seize a piece of the anticipated capital influx.
The fact that all of these ETFs are intended to provide almost the same return has drawn the attention of analysts and academics to the notion that fees will play a significant role in deciding the influx of new assets.
BlackRock’s fee for the first $5 billion of the ETF’s assets would be 0.12% for the entire year after the fund’s listing. Along with the Bitwise Bitcoin ETF, which intends to charge 0.20% and waive the cost on the first $1 billion of assets for six months following the listing, that would put it among the least expensive.
Hours after the SEC said that someone had momentarily entered its X social media account to publish a false statement claiming it had authorized the much anticipated ETF, the SEC released the updated filings.
However, most issuers anticipate that the securities regulator will approve these ETFs by late Wednesday afternoon, and trading could begin as early as Thursday morning.
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