As trillion-dollar asset managers rush to launch their Bitcoin (BTC) ETF products, the management fees they charge will shape competition.
Competing on Fees
Large firms like BlackRock and Grayscale have not disclosed their management fee rates. However, Grayscale currently charges 2.00% but promises to reduce fees if its ETF is approved.
Ark Invest has set a competitive 0.80% management fee for its Bitcoin ETF, while ProShares charges 0.95%.
Fidelity revealed a low 0.39% fee, the lowest announced so far.
Galaxy and Invesco are offering 0.59% but plan to waive fees for 6 months on the first $5 billion in assets.
Expected Approvals and Fees
The SEC is expected to approve ETFs between January 8-10, 2024, with experts predicting many approvals at once.
BlackRock filed for an ETF in June and is expected to set a competitive 0.47% fee facing no challenge from Vanguard.
The market anticipates more fee disclosures from large asset managers in the coming days.