In the race to secure approval for spot bitcoin exchange-traded funds (ETFs) in the United States, asset managers are intensifying a fee war, even as the country’s regulatory body, the Securities and Exchange Commission (SEC), has yet to signal its stance on allowing the sale of such products.
BlackRock, the largest fund manager globally, declared in a regulatory filing on Monday its intent to charge customers a mere 0.2% of the net asset value for the first year or until its ETF accumulates $5 billion in assets, subsequently rising to 0.3%.
Ark Investment Management, a competing applicant, initially proposed an 0.80% fee on its bitcoin holdings. However, in a strategic move, the firm now offers to forgo fees for the first six months or until the ETF’s assets reach $1 billion. Following this period, the fee will be fixed at 0.25%. Invesco has also joined the fray, pledging a fee waiver for six months or until the fund hits $5 billion, eventually settling at 0.59%.
These recent developments mark the final stages of regulatory filings in anticipation of an imminent decision from the SEC this week regarding the approval of stock market funds directly investing in bitcoin. Should the green light be given, the launch of these funds could unfold within a matter of days, opening up new avenues for investors in the cryptocurrency space.