Fund issuers lower planned spot bitcoin ETF fees as possible launches approach

With an SEC ruling on spot bitcoin ETFs expected by Wednesday, Bitwise, WisdomTree, Invesco and Valkyrie reveal new intended fees for their planned offerings

by Ben Strack /

January 9, 2024 11:19 am

Mike Lawrence for Blockworks

Bitwise and other fund groups prepping a spot bitcoin ETF decided to lower their fees ahead of the Securities and Exchange Commission’s ruling on such funds.

A handful of issuers first revealed intended price points of their planned bitcoin funds on Monday. Some then amended their fees in updated registration statements filed roughly 24 hours later.

Crypto-focused firm Bitwise — which had emerged as the leader Monday with the 0.24% planned fee for its bitcoin ETF — now seeks to charge 0.20% for the product, a Tuesday filing indicated.

WisdomTree, Invesco and Valkyrie are also looking to become more competitive in what industry watchers expect will be a fierce fight for assets.

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WisdomTree dropped the planned fee for its proposed spot bitcoin ETF fee from 0.50% to 0.30% Tuesday. A fund by Invesco and Galaxy Digital would now charge 0.39%, down from 0.59%.

Meanwhile Valkyrie, which revealed a higher-than-most fee of 0.80% on Monday, disclosed a new intended fee of 0.49% in its latest registration statement.

The SEC could still block such products from launching, as it has done over the years. A decision on these funds is expected by tomorrow.

The price updates come after The ETF Store president Nate Geraci told Blockworks the low planned fees disclosed Monday “speaks to how brutally competitive this category will be.” He noted that the price levels show that investors — should these funds be approved — are “the clear winners.”

Proposed products by BlackRock, Fidelity, Franklin Templeton, VanEck, as well as one by Ark Invest and 21Shares, appear poised to carry the same fee they revealed Monday — ranging from 0.25% to 0.39%. BlackRock’s planned fund would charge 0.20% for the first $5 billion of the fund’s assets, before increasing to 0.30%.

Grayscale Investments — whose spot bitcoin ETF would have the highest fee, at 1.5% — also kept that price point, a Tuesday disclosure shows.

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