Franklin Templeton Boosts Edge With Spot Bitcoin ETF Fee Slash

• The company reportedly opted to cut the yearly fee for its Bitcoin ETF from 0.29% to 0.19%.
• The business also included a fee waiver for the next six months in the filing.

Franklin Templeton, one of the issuers of the Spot Bitcoin ETF, made a bold move by cutting its sponsor fee, making it the lowest among its rivals. In its January 12 filing, the company reportedly opted to cut the yearly fee for its Bitcoin ETF from 0.29% to 0.19%.

Along with its proposal to lower the sponsor’s charge by 10 basis points, the business also included a fee waiver for the next six months in the filing. For the first ten billion dollars of the fund’s assets, there would be “zero” fees from January 12 through August 2 of this year, according to the announcement.

Fierce Competition

Franklin Templeton is now in a good competitive position against big companies like BlackRock and ARK 21 Shares thanks to the fee drop.

Bitwise formerly had the lowest fee of 0.20% after the first six months of no fees. The 0.25 percent post-waiver fees offered by ARK 21Shares and Fidelity are also quite attractive. While VanEck’s fee structure is similar to that of ARK 21Shares, it does not provide a waiver. In contrast, Grayscale’s 1.5% sponsor fee remains the highest, albeit it is lower than the 2% originally suggested.

iShares, an exchange-traded fund (ETF) offered by BlackRock, levies a 0.20 percent fee for the first twelve months after it launches or until its assets reach $5 billion. However, their post-waiver charge is 0.30 percent. Furthermore, after the waiver, Wisdomtree plans to charge 0.30%. At the same time, Invesco and Valkyrie chipped in with yearly fees of 0.39% and 0.49%, respectively, for Bitcoin ETFs.

With a minimum fee of 0.19% by Franklin Templeton, Hashdex’s 0.90% sponsor fee may hurt its ETF’s success. On top of that, it has flat-out refused to waive any fees.

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