BlackRock, VanEck, Bitwise file low ETF fees

Monday has seen a flurry of final filings from issuers eyeing approval to list spot Bitcoin exchange-traded funds (ETFs). After BlackRock, VanEck and Ark/21Shares submitted their final changes with low fees, Bitwise intensified the “fee war” with a 0.24% fee rate.

This is after BlackRock set its fee at 0.30% and VanEck and Ark/21Shares at 0.25%. Last week, Fidelity had filed its amended S-1 to show a 0.39% fee. Today’s filing by Bitwise also highlighted a 6-month waiver that means it starts at 0.00%. Meanwhile, BlackRock has indicated a waiver to 0.20%.

Bloomberg ETF analyst James Seyffart shared the update below showing the state of play in terms of what different issuers are proposing.

WOW: This morning was wild for #Bitcoin ETF filers. Here’s the state of play on the fee war front. Lowest long term fee is @BitwiseInvest at 0.24% followed closely by @vaneck_us at 0.25%. But we also have fee waivers on 3 for 6 months down to 0.0%. Plus BlackRock waiver to 0.20% pic.twitter.com/8bfhtFHOfH

— James Seyffart (@JSeyff) January 8, 2024

Bitcoin price jumps as “fee war” erupts

Eric Balchunas, a senior ETF analyst at Bloomberg had earlier commented on the potential for the price war, or “ETF terrordome” intensifying ahead of approval. Are crypto exchanges going to lower their own fees in the wake of this move? 

The analyst suggests they may have to do it before it’s “too late.”

Balchunas also commented on Grayscale Investments’ fee rate that has dropped from 2% to 1.5%, noting the crypto firm’s considerably higher fee could see financial advisors pick the “sub 40 bps” rates offered by the traditional finance heavyweights.

Wow, Grayscale totally defying Terrordome (which they are not natives of) which usually doesn’t work out well but maybe they can afford to given their massive embedded aum and volume. Hard to imagine advisor (where the big money is) picking a 1.5% ETF when others sub 40bps. https://t.co/T60yz3hlXh

— Eric Balchunas (@EricBalchunas) January 8, 2024

Bitcoin price has jumped 1.5% in the past hour to trade above $45,000 as attention turns to the SEC. Most analysts say the go ahead for exchanges to list the ETFs could be given by Wednesday, January 11.

The nod, coming at the beginning of a year expected to be big for the bulls, could see BTC price surpass $50k in coming days. Predictions for this cycle is that Bitcoin could hit $100k or more.