A fee war has erupted among Spot Bitcoin exchange-traded funds (ETFs) even before the US Securities and Exchange Commission (SEC) has approved the product. As per the latest information, the following are the ETF fees:
- Ark: 0.25%
- Bitwise: 0.24%
- BlackRock iShares: 0.30%
- VanEck: 0.25%
- WisdomTree: 0.5%
- 21Shares: 0.25%
“The lowest long-term fee is Bitwise at 0.24% followed closely by VanEck at 0.25%. But we also have fee waivers on 3 for 6 months down to 0.0%. Plus BlackRock waiver to 0.20%.” – James Seyffart, ETF Research Analyst with Bloomberg Intelligence
This fee war is considered a highly anticipated event that is expected to impact the price of Bitcoin. According to Aditya Das, a market analyst at Brave New Coin, the approval of a spot Bitcoin (BTC) ETF in the United States seems imminent. The final deadline for at least one major ETF application, the Ark 21 Shares application, is January 10th. Analysts believe that the SEC may potentially approve multiple applications on this date, as exchanges have already listed amended documents related to the applications, suggesting their expectation of approval from the SEC in the coming days.
“The SEC is either going to have to come up with a new reason… Because you’ve been denying these ETFs for all these reasons. Courts said those reasons don’t matter anymore, and now you’re coming out with new reasons.” – James Seyffart, ETF Research Analyst with Bloomberg Intelligence
Two issuers, WisdomTree and VanEck, have already successfully listed their ETFs on the Depository Trust & Clearing Corporation (DTCC), just days before the SEC’s deadline to announce its decision on the Ark 21Shares Bitcoin ETF filing.
“The US market is witnessing a fierce competition among ETF issuers to offer the lowest fees for Bitcoin ETFs, which are expected to attract ‘huge’ inflows from US investors seeking exposure to the leading cryptocurrency.” – Laurent Kssis, Crypto Expert at CEC Capital
However, Kssis warns that the launch of a Bitcoin ETF may not benefit everyone involved. The custodians and service providers supporting the ETF issuers may not see significant revenue growth from their low-margin businesses.
“A $1 billion inflow into a Bitcoin ETF with a 0.25% fee would only produce $2.5 million in annual revenue for the issuer.” – Laurent Kssis, Crypto Expert at CEC Capital
“If Bitcoin spot ETF is successfully approved, more and more regulatory agencies will recognize the importance of Bitcoin and the crypto market. This will become a monumental event leading to clearer regulatory measures and more comprehensive investor protection, allowing more traditional institutions, professional, and retail investors to enter the crypto market easily.” – Johnny Lyu, CEO of KuCoin
Meanwhile, the price of Bitcoin (BTC) recently experienced a notable surge, breaching the $47,000 mark on Monday and recording an 8% gain in the last 24 hours. This optimistic movement is attributed to the expectations surrounding the potential approval of the ETFs. There are speculations that an ETF approval could trigger a further bullish trend in the cryptocurrency market.
