BlackRock and Potential Bitcoin ETF Providers Unveil Fees

• Spot Bitcoin ETF Applicants Unveil Fee Structures
• Proposed Fee Structures
• Upcoming ETF Listings
• Invesco and Galaxy's Fee Waiver
• ARK and 21Shares' Fee Announcement
• Bitcoin's Reaction to the News
• Update (Jan. 08, 12:25 UTC):

Spot Bitcoin ETF Applicants Unveil Fee Structures

BlackRock, Fidelity, and other potential listers of a spot bitcoin exchange-traded fund (ETF) in the United States have disclosed their fee structures. This comes as the crypto industry anticipates final approval from the Securities and Exchange Commission.

Proposed Fee Structures

As per the final S-1 filing, BlackRock plans to commence its fee at 20 basis points for the inaugural 12 months, until the fund accrues $5 billion, thereafter it will stabilize at 30 bps. Contrarily, Bloomberg Intelligence's ETF analyst James Seyffart had anticipated BlackRock and Fidelity to implement a 0.39% fee. Fidelity, however, has confirmed its fee accords with Seyffart's estimation.

Upcoming ETF Listings

With the likelihood of as many as 13 ETFs preparing to list in the U.S. in the approaching days, providers are endeavoring to distinguish themselves from competitors. One chief strategy in doing so is the establishment of attractive fee structures.

Invesco and Galaxy's Fee Waiver

Prior reports have shown that Invesco and Galaxy are foregoing their fee for the first six months until their fund hits $5 billion in assets. Beyond this point, a 0.59% fee will be imposed.

ARK and 21Shares' Fee Announcement

ARK, Cathie Wood's investment company, and its custodian 21Shares, have declared a fee of 0.25%, which is parallel to that of VanEck. Valkyrie, on the other hand, has proposed a 0.8% fee for its ETF.

Bitcoin's Reaction to the News

Bitcoin$42,260 -0.64% demonstrated a positive response to the news, escalating toward $45,000, which represented an approximate increase of 1.8% within the past 24 hours. At the time of reporting, BTC was trading at a value of $44,865.

Update (Jan. 08, 12:25 UTC):

This article now includes additional detail and context regarding the fee structures of the providers, and updates the BTC price.

Edited by Jonathan Stoker