In the US spot Bitcoin ETF contest, Cathie Wood's ARK Investment Management and digital asset company 21Shares have just emerged as the front-runners, listing a fee on their upcoming offering. As per an updated filing on Monday, the Ark 21Shares Bitcoin ETF would impose a management charge of 80 basis points. This implies that an …
In the US spot Bitcoin ETF contest, Cathie Wood’s ARK Investment Management and digital asset company 21Shares have just emerged as the front-runners, listing a fee on their upcoming offering. As per an updated filing on Monday, the Ark 21Shares Bitcoin ETF would impose a management charge of 80 basis points. This implies that an investor would pay 80 cents for every $100 they invested. The ETF application, which would trade under the ticker ARKB, had previously provided a placeholder capacity of 70 basis points. With the modification on Monday, Ark and 21Shares have started the process that industry observers believe would result in an immediate race to the bottom for fees. Prominent asset-management firms, such as BlackRock Inc., Invesco Ltd., and Fidelity Investments, which are renowned for their cost-effective portfolios, have also submitted applications for exchange-traded funds (ETFs) that would invest in cryptocurrencies directly. US regulators have not yet approved this structure, and none of the applications have included management fees. Even so, 80 basis points are less than the 95 basis point fee levied by the largest Bitcoin futures-based fund, the $1.4 billion ProShares Bitcoin Strategy ETF (ticker BITO). Furthermore, it is far less than the $23 billion Grayscale Bitcoin Trust (GBTC), which has a 2% fee. The Securities and Exchange Commission will soon make a decision on whether or not to approve the goods for sale in the United States, and the new filing from Ark and 21Shares is just one more step in this difficult process. Last Monday, the agency again postponed two more files, continuing a recent trend of delays.
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