BlackRock and Ark Slash Fees on Bitcoin ETFs: A Race to Win Investors

BlackRock, Inc BLK and Ark Innovation ETF ARKK parent Ark Investment Management have revised their fee structures for their proposed spot bitcoin exchange-traded funds (ETFs), entering a competitive fee war before obtaining approval from the U.S. Securities and Exchange Commission. Bitcoin BTC/USD is trading at around $45,100 at the time of writing.

BlackRock's iShares Bitcoin Trust lowered its fee from 0.30% to 0.25%, with an additional discount of 0.12% for the first $5 billion of assets in the fund's first year. 

Similarly, ARK 21Shares Bitcoin ETF reduced its fee from 0.25% to 0.21%, Reuters reports.

This fee competition highlights the urgency these firms feel in attracting capital inflows to their ETFs, given the expected demand for such investment vehicles. 

Also Read: VanEck CEO Anticipates Spot Bitcoin ETF To Start Trading Thursday, Bitcoin Holds Above $46,000

Analysts and experts suggest lower fees will be crucial in drawing new assets, considering the similar expected returns from these ETFs. 

For instance, Bitwise Bitcoin ETF plans to charge a fee of 0.20% and has proposed waiving the charge on the first $1 billion of assets for six months post-listing.

This development followed an incident where the SEC's X social media account was briefly compromised to post a false message about the approval of these ETFs. 

Most issuers remain hopeful of receiving regulatory approval soon, with expectations that trading could start as early as the following day after approval. 

This aggressive fee competition underscores the cryptocurrency ETF market's intense interest and potential growth.

Goldman Sachs Group, Inc GS is reportedly in talks to become an authorized participant for the proposed spot Bitcoin exchange-traded funds (ETFs) developed by BlackRock and Grayscale.

Price Actions: BLK shares closed lower by 0.33% at $794.52 on Tuesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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