Spot Bitcoin ETF reveals competitive fee structure

Investment managers recently revealed their proposed fee structure for an upcoming Bitcoin spot exchange-traded fund (ETF), setting the stage for lower-than-average costs for U.S. investors. Firms including BlackRock, VanEck, Ark Investments/21Shares and Bitwise have filed documents with the U.S. Securities and Exchange Commission (SEC) outlining typical mark-to-market fees for U.S. ETFs.

BlackRock announced a 0.30% fee for the iShares Bitcoin Trust, with a promotional rate of 0.20% applicable to the first $5 billion in assets in the previous 12 months. VanEck and Ark Invest have partnered with 21Shares to set fees at 0.25%. Ark Invest and 21Shares have the added incentive of waiving all fees for the first six months or until the fund reaches $1 billion in assets.

Fidelity’s Wise Origin Bitcoin Trust is priced at 0.39%, while WisdomTree’s Bitcoin Trust is priced at 0.50%. Valkyrie Digital Assets has set a 0.80% fee for its Valkyrie Bitcoin Fund, noting that the firm may choose to temporarily waive the fee at its option, although it has no current plans to do so.

Invesco has partnered with Galaxy Digital to set fees on the Invesco Galaxy Bitcoin ETF at 0.59%, with a six-month exemption for the first $5 billion in assets. Franklin Templeton charges 0.29% on Digital Holdings Trust, and Bitwise Asset Management prices the Bitcoin ETF at 0.24%.

Hashdex has disclosed that its current product, the Hashdex Bitcoin Futures ETF, charges 0.94% fees and has applied to convert it to a spot Bitcoin ETF.

The launch of a spot cryptocurrency ETF will allow investors to gain exposure to Bitcoin’s market price without purchasing the digital currency directly. Predictions from these ETFs have fueled the recovery in Bitcoin’s value in recent months.

The U.S. Securities and Exchange Commission (SEC), which has historically rejected all spot Bitcoin ETF applications due to fraud concerns, is expected to announce a decision on the matter as early as this week. The results will be closely watched by the investment community, as approval could pave the way for wider acceptance and integration of crypto assets into traditional investment portfolios.

Reuters contributed to this article.

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