Spot Bitcoin ETF Contenders Slash Fees Ahead Of SEC's Decision Day: 'Two Years Worth Of Fee War Condensed Into A Couple Days'

In yet another round of fee cuts, four spot Bitcoin ETF applicants have taken to last-minute fee reductions, possibly gaining the extra edge at this high-level juncture of competition.

What Happened: Invesco, Bitwise, Valkyrie and WisdomTree announced a reduction in their fees in the latest amended applications for their spot Bitcoin ETFs.

• Bitwise: Zero fees for the first six months or until $1 billion in assets. With the lowest number already, its fee has now dropped to 0.20% from 0.24% earlier.
• Invesco: Zero fees for the first six months or until $5 billion in assets and fees later at 0.39%, lowered from 0.59% earlier.
• Valkyrie: Dropped fee to 0.49% from 0.80% in the prior application.
• WisdomTree: Cut to 0.30% from 0.50% earlier.

The updates come on the heels of the SEC’s highly expected ETF approval decision on Wednesday, Jan. 10, which also happens to be the deadline for the Ark 21Shares Bitcoin ETF application.

Also Read: Fee War Erupts Among Bitcoin ETF Applicants: Could 'Wave Of Capital' Inflow Make It The Most Successful ETF Launch Ever?

Why It Matters: The possibility of U.S. regulators approving a range of spot Bitcoin ETFs could heighten fee competition among issuers. Consequently, these firms are lowering their fees, a strategy aimed at boosting investment inflows and expanding their market reach.

Bloomberg analyst Eric Balchunas tweeted, “Amazing, we down to 20bps, it's like two years worth of fee war condensed into a couple days… thought it would take us a lot longer to get to these levels. Vanguard not part of this race but their spirit def is...”

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