Publishers Announce Fee Standards! Comprehensive Compilation of Bitcoin Spot ETF Costs

Publishers Announce Fee Standards! Comprehensive Compilation of Bitcoin Spot ETF Costs

Publishers Announce Fee Standards! Comprehensive Compilation of Bitcoin Spot ETF Costs

The Bitcoin spot ETFs, which are currently under multiple applications, have announced their fee structures in the updated documents submitted today. According to a table compiled by Bloomberg analyst James Seyffart, ARK 21Shares and Bitwise plan to seize the market with a promotional strategy of 0% management fee initially. After the fund has been traded for 6 months or its size exceeds $1 billion, a fee of 0.24% will be charged. Invesco has also adopted a similar strategy, but with different end conditions (6 months or fund size exceeding $5 billion), and a higher fee of 0.59% will be charged after the promotion ends.

The most anticipated BlackRock iShares Bitcoin ETF will charge an initial management fee of 0.2% and increase it to 0.3% after the fund has been traded for 1 year or its size exceeds $5 billion.

In addition, the highest fee in the table belongs to Grayscale. According to their latest submitted Bitcoin spot ETF S-3 updated document, the fee rate has decreased from 2% to 1.5%, but it still includes a clause about exempting fees. Therefore, the fee rate for Grayscale’s Bitcoin spot ETF has not been finally determined and may be further reduced.

However, another analyst Eric Balchunas believes that the reason Grayscale maintains such a high management fee is that the fund’s existing scale is large enough and does not require price reductions to compete in the market. Even if clients shift to other ETFs, Grayscale can still profit from the process of clients exiting and wait until the future to adjust the fee standards.

Another interesting aspect regarding the fee mechanism of Bitcoin ETFs is that asset management company VanEck previously publicly committed to long-term investment in the Bitcoin ecosystem and stated that once their Bitcoin ETF is approved, they will allocate 5% of the potential profits to Bitcoin ecosystem developer Brink for at least ten years. So far, other issuers have not made similar commitments.