Grayscale Sets 1.5% Fee Rate in Amended S-3 Filing, 5x More Than Blackrock

Grayscale Investments has shocked the world with its fee rate, a figure that is higher than those of its core rivals.

The spot Bitcoin Exchange Traded (ETF) race is heating up, with potential issuers jostling to outrank their peers in fee rate. According to an update from markets reporter Walter Bloomberg, Grayscale’s latest S-3 amendment shows the 1.5% rate.

🔸 GRAYSCALE INVESTMENTS FILES AMENDED S-3 FOR SPOT BITCOIN EXCHANGE TRADED FUND

🔸 GRAYSCALE SETS FEE FOR PROPOSED SPOT BITCOIN ETF AT 1.5%

— *Walter Bloomberg (@DeItaone) January 8, 2024

As of 8 AM GMT-5, at least ten potential issuers have submitted their amended S-3s and are ready for the launch of their Bitcoin ETFs if the green light comes this week.

The Grayscale ETF Fee Defiance

One of the crucial trends experts forecasted for the spot Bitcoin ETF in view is that the United States Securities and Exchange Commission (SEC) will approve all spot Bitcoin ETF applications at the same time to prevent giving an individual issuer the first-mover advantage.

With this in mind, analysts were projecting that low fee rates will be the avenue through which spot Bitcoin ETF issuers will attract new customers. The 1.5% fee peg from Grayscale Investments is notably higher than the 0.3% that BlackRock Inc plans to charge for the product.

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Other potential issuers like Ark 21Shares are even stepping up the bar with a lower fee rate pegged at 0.25% of the Trust’s Bitcoin Holdings. This fee structure can tilt the odds in any of the potential issuers’ favor, and the current revelations and discrepancies between Grayscale’s rate and its peers have sparked intense criticisms from members of the community.

Bitwise is going to charge a 0.24% fee with a 6-month waiver to 0.00%, while Franklin will charge a 0.29% fee.

Amidst the criticisms, many wonder how Grayscale will compete with BlackRock despite its deep roots in the industry.

More on the Spot Bitcoin ETF Checklist

The final amended S-1 and S-3 filings from potential spot Bitcoin ETF is one of the series of events that market expert Nate Geraci noted earlier that he was keeping an eye on for this week, as reported by The Crypto Basic.

Besides these filings, other events on his checklist include the actual approval votes from the two crucial SEC divisions, the Division of Trading & Markets and the Division of Corporate Finance. Additionally, the market expert expects the marketing wars to thicken up in the coming days as the approval becomes a reality.

Bitcoin (BTC) is currently regaining its momentum following the bullish hype in the market. The coin is up 2.05% in the past 24 hours to $44,742.87, with its market cap and trading volume coming in at $877,054,260,412 and $30,511,746,774.