After many
years of waiting, investors will finally see the launch of the first-ever spot
Bitcoin (BTC) exchange-traded fund (ETF) in history. The market was immediately
flooded not with one or five but nearly a dozen such investment products that should
become available today (Thursday) on the NYSE, NASDAQ, and CBOE.
Although
their operating principles are very similar, they differ in terms of the
transaction fees they offer. Several issuers changed the fee structure at the last minute, and some offer limited-time “promotions.”
Which Bitcoin ETF Offers
the Lowest Fees
Analysts
anticipate a fierce battle for a share of the $50 to $100 billion expected to
flow into these new ETFs. Issuers began to compete on fees to capture a larger market share in this competitive environment.
For
instance, BlackRock, the largest issuer, reduced its iShares Bitcoin Trust (IBIT) prices from 0.3% to 0.2% for the first twelve months or for the
first $5 billion in IBIT ETF trades.
Finance
Magnates’
infographic shows that four issuers, namely Bitwise, ARK Invest, Invesco, and
WisdomTree, have decided to cut fees to zero for six months, followed by a rate
of 0.2-0.3%, to attract more capital.
Hashdex and
Grayscale Investments, however, did not participate in this fee war. Hasdhex’s Bitcoin ETF will charge 0.9%, while
Grayscale’s Bitcoin Trust will have a fee of 1.5%.
Coinbase
is the custodian for…
