News

Spot Bitcoin ETF Providers Reveal Costs—A Comparison of Their Expenses

single-image

Key Points

  • The SEC is expected to approve the first spot bitcoin exchange-traded fund (ETF) this week.
  • The world’s top cryptocurrency by market capitalization, which would be traded in the new ETFs, increased more than 100% in 2023, and analysts predict significant bitcoin investment inflows in 2024.
  • As competition heats up, ETF providers are sharing proposed fee structures for these new bitcoin instruments, with some waiving or offering lower-than-usual fees.

The widely anticipated introduction of a spot bitcoin exchange-traded fund (ETF) has fueled competition among providers, with some suspending fees until they show robust investor uptake.

Stay in the know on crypto by frequently visiting Crypto News Today

BlackRock (BLK), VanEck, ARK Investment Management LLC, and Bitwise Asset Management Inc. are among the firms looking to establish a spot bitcoin ETF, and their recent Securities and Exchange Commission (SEC) filings suggest that they plan to undercut the average market rate for ETF investor fees in the United States.

Bitwise lowered the bar by announcing a planned 0.20% management fee for its spot bitcoin ETF, compared to the 0.37% average for existing U.S. ETF products and mutual funds in 2022, according to Morningstar Inc. investment research. Given that all ETFs track bitcoin, the fees they charge may help investors distinguish them.

Bitwise is followed by VanEck and ARK Invest’s 21Shares, both of which plan to charge 0.25% ETF expense fees, while BlackRock plans to charge 0.30%. After submitting its bitcoin ETF proposal last year, BlackRock fueled a rise in bitcoin prices.

The adoption of a Bitcoin spot ETF by institutional and retail investors is something that cryptocurrency enthusiasts are anticipating would happen. Once an ETF is established, investment bank Standard Chartered said in a research note on Monday that it anticipates investment flows of $50 billion to $100 billion in 2024 alone.

ETF providers are eager for potential investment inflows and have ratcheted up the fee arms race with waiver periods. Bitwise stated that it would waive fees for new spot bitcoin ETFs for the first $1 billion invested in the fund’s first six months, whereas BlackRock set a 12-month waiver period or the first $5 billion invested. The 21Shares Bitcoin ETF, launched in collaboration with ARK Invest, offers a six-month waiver for the first $1 billion invested, followed by a 0.25% fee (SEC). “ARK 21 Shares Bitcoin ETF S-1/A.”CRYPTOCASTER® - DECENTRALIZED FREEDOM!


W

e hope you enjoyed this article. Before you move on, we invite you to consider supporting CryptoCaster’s journalism.

Billionaire owners like Elon Musk, Larry Fink (BlackRock), and Jamie Dimon (JP Morgan Chase) often have a strong influence on the hidden agendas surrounding the paradigm shift brought about by cryptocurrency and emerging Web3 technologies. CryptoCaster stands apart. We have no billionaire owner or shareholders to please. Our journalism is dedicated to serving the public interest in crypto development and institutional disruptions, not profit motives.

We avoid the pitfall of much U.S. and global media, which often resorts to false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency guide everything we do, we recognize that there is a right and wrong stance in the fight against fiat global banking interests and the monetary reconstruction driven by the emerging crypto ecology.

When we report on issues like the FTX, Binance, and Ripple crises, we’re not afraid to name names and uncover the truth. As a crypto sentinel, we offer a fresh, outsider perspective on global monetary disruption—something often missing from the insular American and European media bubble.

CryptoCaster’s paywall-free journalism is accessible worldwide thanks to our unique reader-supported model. This is made possible by readers like you. Your support keeps us independent, free from outside influence, and accessible to everyone, regardless of their ability to pay for news and information.

We are grateful for the ongoing monetary support from our readers. If you haven’t yet considered supporting CryptoCaster, please consider contributing just once from $1 or more in Bitcoin (satoshi) or Ether, or even better, support us monthly with a bit more. Scroll further down this page to find CryptoCaster’s wallet addresses.

Thank you.

Kristin Steinbeck
Editor, CryptoCaster


Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.


Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


CRYPTOCASTER HEATMAP


You may also like