(Reuters) -A raft of investment managers disclosed the fees they plan to charge for their proposed spot bitcoin exchange-traded funds (ETF), in another step toward approval this week by the U.S. securities regulator.
BlackRock (NYSE:BLK), VanEck, Ark Investments/21Shares and Bitwise, among others, said in filings with the U.S. Securities and Exchange Commission (SEC) that they expect to significantly undercut the average market rate for ETFs.
Their rates were well below the average rate analysts had anticipated as well as the range that some issuers had indicated. Analysts and academics noted that since all the ETFs would likely deliver the same return, their fees will be an important tool in attracting inflows of new assets.
A spot crypto ETF would track the market price of the underlying crypto asset, giving investors exposure to the token without having to buy the currency.
The SEC is expected to announce its decision on spot bitcoin ETF applications as early as this week. It had previously denied all such applications, citing potential for fraud.
Here are the fees disclosed by the companies:
Company Trust/ETF Fees Notes
name disclosed
BlackRock 0.25% Co says fees will
iShares be 0.12% for the
Bitcoin first $5 bln in
Trust assets for 12
months
Grayscale 1.5%
Investments Grayscale
Bitcoin
Trust
Fidelity 0.39%
Wise
Origin
Bitcoin
Trust
Ark Invest and 0.21% Will waive all fees
21Shares ARK for six months or
21Shares first $1 bln in
Bitcoin assets
ETF
VanEck 0.25%
VanEck
Bitcoin
Trust
WisdomTree 0.50%
WisdomTre
e Bitcoin
Trust
Valkyrie Digital 0.80% Co says it may
Assets Valkyrie temporarily waive
Bitcoin all or a portion of
Fund the fee "at its
discretion for
stated periods of
time" but that it
doesn't intend to
do that "presently"
Invesco and 0.59% Will waive on first
Galaxy Digital Invesco $5 bln in assets
Galaxy for six months
Bitcoin
ETF
Franklin 0.29%
Templeton Franklin
Templeton
Digital
Holdings
Trust
Bitwise Asset 0.20% Co says it will
Management Bitwise waive fees on the
Bitcoin first $1 bln in
ETF assets
Hashdex 0.94%* Fees on current
Hashdex product; Co has
Bitcoin filed to convert
Futures bitcoin futures ETF
ETF into a spot bitcoin
ETF
Source: Regulatory filings with the U.S. SEC