While the race for Bitcoin ETFs led by those nicknamed the titans of Wall Street is not over, the recent escalation announced in the fee war for Bitcoin ETFs shows us that the history of Bitcoin ETFs in the cash is only just beginning. Indeed, many important players on Wall Street, awaiting the sacrosanct approval of the Securities and Exchange Commission in the USA, have revised their prices.
The competition continues between the titans of Finance
L’intensification of competition between the financial giants for spot Bitcoin ETFs is manifested by the modification of rates in their S-1 forms, an essential step to obtain approval from the SEC. Everyone filled it out and modified it. Once these have been filed, there are only 48 hours left for the SEC to make its decision.
So let’s recap. BlackRock offers a 0.20% fee for the first year or until the ETF reaches $5 billion in assets, then increasing to 0.30%. WisdomTree sets its fees at 0.5%, while Franklin Templeton and Fidelity opt for fees of 0.29% and 0.39%, respectively.
Invesco/Galaxy offers a year of no fees, then drops to 0.59%, and VanEck sets its fees at 0.25%. Ark Invest & 21 Shares and Bitwise attract attention with no fees for the first six months or until reaching $1 billion in assets, before dropping to 0.25% and 0.24%, respectively. Grayscale reduced its fees from 2% to 1.5%.
In other words, the fight to attract investors by offering more attractive rates begins. A “fee war” described by Eric Balchunas, analyst for Bloomberg.
The fee war, the tree that hides the Bitcoin ETF?
These changes in the S-1 forms and fierce pricing competition reveal a adaptability and commercial aggressiveness among Wall Street players in the burgeoning spot Bitcoin ETF sector.
This dynamic could shaping the future of the cryptocurrency market, with important implications for investors and regulators both in the US and around the world. The price of BTC is at the forefront of taking the hits, as evidenced by its recent volatility.
Note, however, that this battle over fees remains secondary for the moment. Let’s not be fooled. Like the news this Monday which is very calm, it seems that everyone, investors, whales, media and other members of our ecosystem are hanging on the lips of the SEC not while waiting for Godot, but while waiting for approval Bitcoin ETFs. According to BlackRock, there is no doubt that the result will fall on Wednesday.