Franklin Templeton Breaks Records With Lowest Bitcoin ETF Fee

In a groundbreaking move, the Spot Bitcoin ETF issuer Franklin Templeton reduced its sponsor fee, setting the record for the lowest fee among its competitors. The filing, dated January 12, suggests that the firm has decided to lower its annual Bitcoin ETF fee from 0.29% to 0.19%.

Franklin Templeton’s Move Sets A High Bar

In the filing where the firm proposed a reduction of 10 basis points in the sponsor’s fee, it introduced a fee waiver for the next six months. It noted that from January 12 through August 2 this year, ‘zero’ charges would be applicable on the ETF for the first $10 billion of the fund’s assets. The fee cut positions Franklin Templeton as one of the strongest competitors for major players, such as Grayscale, BlackRock, and ARK 21 Shares.

Earlier, Bitwise was the one that offered the cheapest fee of 0.20%, applicable after the initial six-month waiver. Moreover, ARK 21Shares and Fidelity also offer a lucrative post-waiver fee of 0.25%. Although VanEck mirrors ARK 21Shares fee model, it doesn’t offer any waiver. Whilst, Grayscale stands with the highest sponsor fee of 1.5%, down from the 2% proposed earlier.

BlackRock’s iShares charges a 0.20% fee during the first 12 months of their ETF going live or until it attains $5 billion in assets. Whilst, their post-waiver fee stands at 0.30%. Furthermore, Wisdomtree is slated to charge 0.30% as a post-waiver fee. Meanwhile, Invesco and Valkyrie joined the Bitcoin ETF fee race with an annual fee of 0.39% and 0.49%, respectively.

Hashdex has set a 0.90% sponsor fee, which could be detrimental for its ETF’s performance considering the lowest fee of 0.19%. Moreover, it has refused to offer any fee waiver. It could be a potential challenge since it’s not a significant player like Grayscale, which was able to maintain its position despite high charges.

Also Read: Spot Bitcoin ETFs Debut with Over $4 Billion Trading

Spot Bitcoin ETFs Make Strong Debut

The first day of trading for Spot Bitcoin ETFs on Wall Street saw remarkable activity, with Grayscale taking the lead. The ETFs recorded over $4 billion in trading volumes during the grand debut. A total of 11 Spot Bitcoin ETFs, including offerings from major investment players like BlackRock Inc. and Ark Invest, went live on Thursday, January 11.

The Bitcoin ETFs registered a massive trade volume of $4.6 billion. Industry advocates see these ETFs as a crucial stepping stone for broader adoption by everyday investors, anticipating them to act as a catalyst for further market gains.

Eric Balchunas, the Bloomberg ETF analyst, reported a total of 700,000 individual trades executed on the first day across the 11 Spot ETFs. Balchunas noted that the increased grassroots action, exceeded his expectations and is viewed positively.

Also Read: South Korea Restricts Overseas Spot Bitcoin ETF Trading Amid Regulatory Woes

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