The crypto market has been waiting for the approval of more than a dozen spot ETFs for Bitcoin (BTC) for a long time. Then the world's largest asset manager, BlackRock, filed its application with the US Securities and Exchange Commission. Now, due to huge competition, it has reduced the trading fees it plans to charge.
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For a long time there was a rather melancholic tone when it came to the approval of American spot ETFs, as the SEC has refused to approve this type of ETF since the first applications. Exchange-traded funds (ETF) to be approved. Politicians fear, among other things, that the funds could be used to manipulate the market. But BlackRock single-handedly managed to restore optimism.
According to a handy overview from Bitbo, no fewer than 12 different ETF applications have been filed in the US alone, leading to a race between the various ETF providers for the lowest possible costs.
OThe trading costs of various funds were announced on Monday. The ARK Invest and 21Shares funds announced the lowest trading costs – 0.25% to be precise. Fidelity was originally supposed to charge traders a 0.39% fee, but on Tuesday the company reduced the fee to 0.25%.
ARK Invest and 21Shares also reduced their commissions, more precisely to 0.21%. Some funds also set costs to zero for the first six months, including the ARK Invest and 21Shares fund and the Galaxy Digital and Invesco ETF.
BlackRock is also reducing the cost of Bitcoin spot ETFs
In order to put even more pressure on the competition, the BlackRock subsidiary iShares has also reduced costs. According to its own filing with the SEC, it charges a fee of 0.25%, and until the fund is valued at $5 billion, the fee is just 0.12%.
BlackRock is therefore not the cheapest. ARK Invest uses a standard commission of 0.21%, and Bitwise even sets the fee at 0.20%, points out Bloomberg analyst Eric Balchunas. The funds have not yet been approved by the SEC, but Balchunas remains very optimistic. Recently, he increased his expectations of his chances of admission again.
BELOW: BlackRock just cut the fee on its spot Bitcoin ETF to 0.25% (and 0.12% for the first $5 billion). They're really going for the jugular here and want to destroy the others since they were even born, just brutally. ARK also dropped to 0.21%. Bitwise currency low at 0.20%. Terrordome Life. pic.twitter.com/PtSrvAinbW
— Eric Balchunas (@EricBalchunas) January 10, 2024
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