With 11 spot Bitcoin ETFs approved by the Securities and Exchange Commission (SEC) this January 10, 2024, competition is tough between the different issuers. The latter compete with publicity stunts and (generally temporary) reductions in their costs. Asset management giant Franklin Templeton is trying to overtake everyone, pulling even more on its margins.
All 11 Competitors Want to Have the #1 Spot Bitcoin ETF on the Market
The financial titan Franklin Templeton (1,400 billion dollars in assets under management) is one of the latest arrivals in the race for spot Bitcoin ETFs (in September 2023). But this did not prevent the validation of its exchange-traded fund from the king of cryptos from this January 10with 10 other competitors.
If ETFs spot BTC from VanEck And Bitwise rely on the generosity to attract investors, with donations to Bitcoin developers of 5% and 10% on their respective profits, Franklin Templeton is in some way banking on greed investors.
Indeed, the asset management colossus filed a form (Form 8-K) before the Securities and Exchange Commission this January 11, to signal that he was going reduce costs even further on his Franklin Bitcoin ETFlisted on the Chicago Stock Exchange of the CBOE BZX.
Fees at 0.19% for Franklin Templeton, which says it better
Even before the SEC approval and the first day of trading of spot Bitcoin ETFs, we reported the bitter battle over commission fees that the issuers of these funds were already engaging in.
Franklin Templeton therefore adds a layer, specifying to the SEC that he lowered (from this Friday, January 12) its annual fees from 0.29% to 0.19%. That’s it – for now! – the BTC spot ETF with lowest fees of this young market that has just started. If, of course, we exclude the temporary reductions that many offer to attract first investors.
On the subject of momentary reductions, Franklin Templeton is not there too not to be outdone. Indeed, its document to the SEC specifies that “for a period ranging from January 12, 2024 to August 2, 2024”, the fees will be “ 0.00% “, but only for “the first 10 billion dollars of assets of the Fund”.
With the addition of a CEO, Jenny Johnsonwho recently revealed personally own bitcoins, ethers and decentralized finance tokens (Challenge), the Franklin Templeton group seems to firmly believe in its bet on a spot BTC ETF. The asset manager is therefore doing everything possible to be among the first, even if the even bigger giant BlackRock Pulled Coverage on Trading Volumes on the first trading day of January 11, 2024.