BlackRock launches new Bitcoin ETF fees, race to bottom

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BlackRock has slashed fees on a potential Bitcoin ETF in hopes of crushing rivals before the product hits the market.

Global investment management giant BlackRock has announced a significant fee reduction for its spot Bitcoin (BTC) exchange-traded fund (ETF), setting a new standard of competition in the cryptocurrency investment space. This is an important move by the world’s top asset managers amid fierce competition in the non-existent U.S. Bitcoin spot ETF space.

race to the bottom

Similarly, Ark Investment also reduce Its fee is 0.25%.bitwise chosen A slightly different approach is to offer zero fees for the first six months or until the fund reaches a certain size. Thereafter, the fund will charge 0.39%, down from 0.59% previously.

According to reports on January 10 tweet By Eric Balchunas – Senior ETF Analyst, Bloomberg – BlackRock has lowered fees on its first $5 billion spot Bitcoin ETF to 0.25% and even further to 0.12%. The move is seen as an aggressive strategy to outpace rivals in the booming cryptocurrency ETF market.

Below: BlackRock just dropped fees on its spot Bitcoin ETF to 0.25% (0.12% on the first $5b). They really want to hit home, want to crush everyone else, even the people they were born into, it’s so cruel. ARK was also downgraded to 0.21%. Bit current is as low as 0.20%. Horror Dome Life. pic.twitter.com/PtSrvAinbW

— Eric Balchunas (@EricBalchunas) January 10, 2024

Balchunas emphasized that the fee reduction is a bold move by BlackRock to capture the market before other products have a chance to gain a foothold. The intense competition reflects the expected demand and investment interest in digital assets, indicating intense competition among ETF providers for market share.