BlackRock and Ark Investment Management Cut Fees for Bitcoin ETFs
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Two major investment firms, BlackRock and Ark Investment Management, have slashed fees for their proposed Bitcoin exchange-traded funds (ETFs) in the run-up to a decision by the US Securities and Exchange Commission (SEC) on their future. The SEC is expected to announce its decision on some Bitcoin ETF applications later today, following a false post on its Twitter account yesterday claiming that approval had been granted.
Competition Heats Up
The move by BlackRock and Ark Investment Management to cut fees for their Bitcoin ETFs is a sign of the growing competition in the market. Both firms are vying to make their products attractive to investors as the SEC weighs whether to approve the first-ever Bitcoin ETF. The lower fees will make it more appealing for investors to choose these products over others in the market.
BlackRock’s iShares ETF Fees
BlackRock’s iShares ETF will now charge a fee of 0.25%, down from 0.30%. Additionally, BlackRock has introduced an introductory rate of 0.12% for the first 12 months, or $5 billion in assets, compared to the previous rate of 0.20%. This move is expected to make BlackRock’s Bitcoin ETF more attractive to investors.
Ark’s ETF Revised Fees
Ark’s ETF with 21Shares will now charge a fee of 0.21%, down from 0.25%. This reduction in fees is part of Ark’s strategy to make its Bitcoin ETF more attractive to investors as it waits for the SEC’s decision on its application. The lower fee will help Ark’s product stand out in a crowded market and could give it an edge over other offerings.
Are we Close to the Approval?
The sudden fee reduction by these firms BlackRock and Ark Investment is speculated by investors as ETF approval is close. With this, it is crystal clear that the recent SEC’s X (Twitter) account hack is not going to disrupt the spot Bitcoin ETF approval.
Is this the start of a bull run or just a strategic move by a financial giant to attract investors?
Filed under: Bitcoin - @ January 10, 2024 12:20 pm