BlackRock and Ark Invest Reduce Bitcoin Spot ETF Fees: Details

In anticipation of the potential launch of Bitcoin spot ETFs in the U.S., two major applicants, BlackRock and Ark Invest, have reduced their proposed fees for the investment product.   

BlackRock, the world’s largest asset manager, has reduced its Bitcoin exchange-traded fund (ETF) fees to 0.25%, according to a recent filing with the SEC. It is worth mentioning that the asset manager initially set the rate at 0.30% during the early stage of its filing. 

The move is seen as an attempt by BlackRock to make its potential Bitcoin spot ETF to become more appealing. Many crypto enthusiasts will not be surprised to see BlackRock cut its spot Bitcoin ETF fees to 0.25% as the company faces intense competition from other top asset managers, including Fidelity Investment, VanEck, and Valkyrie. 

Cathie Wood’s Ark Invest Cuts Rate

Notably, BlackRock’s revised fee structure aligns with similar moves made by other top asset managers seeking to launch Bitcoin spot ETFs in the United States. 

For instance, Cathie Wood’s Ark Invest and 21 Shares also reduced their proposed fees from 0.25% to 0.21%. 

According to Reuters, BlackRock plans to reduce the fee of its spot Bitcoin ETF from 0.30% to 0.25%, and the hack is not expected to disrupt the Bitcoin spot ETF process. Ark Investments and 21Shares lowered fees on their spot Bitcoin ETFs from 0.25% to 0.21%.…

— Wu Blockchain (@WuBlockchain) January 10, 2024

Growing Expectations for Bitcoin Spot ETF  

The developments come as the crypto community anticipates the SEC’s decision on the numerous Bitcoin spot ETF applications. According to reports, the SEC is expected to decide whether to approve or deny at least one of the multiple applications for physically-settled Bitcoin ETFs today, January 10. 

Notably, the deadline is affiliated with Ark Invest and 21 Shares’ filing. At press time, the SEC has still not issued a decision even though the deadline is today. 

Recall that the SEC triggered a broader market reaction yesterday after its X account announced that the commission had approved all Bitcoin spot ETFs. 

The now-deleted tweet caused an immediate pump and crash for Bitcoin price, with the top asset surging to over $47K before retracing to around $45K. 

Bitcoin price crashed after SEC chair Gary Gensler refuted the report, saying that the commission has not yet approved any physically-settled spot-based Bitcoin ETF for trading. 

Whether the SEC will issue a decision regarding Ark Invest’s ETF filing remains to be seen.

In the meantime, market analysts are optimistic that the regulator will approve one or more of the Bitcoin spot ETF applications this month. In a recent X post, Bloomberg’s analyst Eric Balchunas puts the odds of a Bitcoin spot ETF being denied in January 2024 at a mere 5%. 

Well said although I probably go with 5% at this point. But you gotta leave a little window open for these things.

— Eric Balchunas (@EricBalchunas) January 6, 2024

Interestingly, the remark suggests there is a 95% chance that the SEC would approve a spot Bitcoin ETF this month.