BlackRock and ARK 21Shares Slash Bitcoin ETF Fees

• Anticipation Builds for U.S. SEC Approval of Spot Bitcoin ETF
• BlackRock Introduces New Fee Structure
• Fee Changes from ARK 21Shares
• SEC Expected to Approve Multiple ETFs
• Bitcoin Traders Seek Protection as ETF Deadline Approaches

Anticipation Builds for U.S. SEC Approval of Spot Bitcoin ETF

As the cryptocurrency sector awaits potential approval of a spot bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), BlackRock (BLK) and ARK 21Shares have both introduced lower fees for their proposed ETFs.

BlackRock Introduces New Fee Structure

BlackRock has announced a new fee structure in a recent S-1 filing. For the first 12 months after the fund's listing, the company will charge 12 basis points on the first $5 billion in assets. After this period, the fee will increase to 25 basis points. This marks a change from their initial fee structure, previously listed as 0.2%, which would increase to 0.3% after the promotional period.

Fee Changes from ARK 21Shares

ARK 21Shares has also announced changes to its fee structure. The firm will waive its fees entirely for the first six months after the fund's listing or for the first $1 billion in assets, whichever occurs first. Thereafter, the fee is set to be 0.25%. However, this has now been reduced by 4 basis points to 0.21%.

SEC Expected to Approve Multiple ETFs

The SEC is anticipated to approve multiple ETFs simultaneously. This means that different providers will likely compete for market share, with fee structure serving as a primary point of contention.

Bitcoin Traders Seek Protection as ETF Deadline Approaches

With the looming ETF deadline, Bitcoin$42,260 -0.64% traders are increasingly seeking protection from potential price declines. More information on this topic can be found at Deribit.

Edited by Jonathan Stoker