Some of the sponsors of potential Bitcoin ETFs are updating fees to make their products more appealing to potential investors.
Highlighted in a series of X’s by Bloomberg, amended S-1s were hitting the Securities and Exchange Commission’s Edgar filing system this morning.
Franklin Bitcoin ETF Shares are showing an accrued daily at an annualized rate equal to 0.29% of the net asset value of the Fund.
Bitwise Bitcoin ETF currently has a fee of 0.24% per annum of the Bitcoin holdings but the fee is waived for a 6-month period commencing on the day the Shares are initially listed on the Exchange, and the fee is waived on the first $1 billion of assets.
Fidelity Wise Origin Bitcoin Fund is currently at a fee of 0.39% of the net assets.
Van Eck has filed with a fee of 0.25%.
The Ark 21 Bitcoin ETF announced a fee of 0.25% of the Bitcoin holdings, which will be waived for a six-month period commencing on the day the shares are initially listed on the Exchange, or the first $1 billion of assets, whichever occurs first.
iShares Bitcoin Trust filed to charge a fee of 0.30% of the net asset value, which will be waived for 12 months beginning on the day the shares are initially listed on NASDAQ. The fee will be adjusted to 0.20% of the net asset value for the first $5.0 billion of the Trust’s assets.
Invesco Galaxy Bitcoin ETF will have a fee of 0.59% per year, which will be waived for a 6-month period commencing on the day the shares are initially listed on the Exchange. The entire fee will be waived on the first $5 billion of Trust assets.
WisdomTree Bitcoin Fund says it will charge a fee of 0.50%.
Valkarie Bitcoin Fund will accrue a fee that equals 0.80% annual rate to the Bitcoin holdings.
These fees are from filings this morning and, of course, may change.
It appears that fee changes were driven by Blackrock’s 0.30% fee.
Crypto proponent Caitlin Long notes that lower fees may mean more risk. On X, she shared:
“When fees are lower than costs, please please please ask yourself how the asset manager is making money managing the fund. With no-fee funds, the answer is usually securities lending—a practice that can pose A LOT of hidden risk to investors. What‘s really going on here?”
A decision by the SEC on Bitcoin ETFs is expected to be announced in the coming days.
