The Start of a Fee War for Spot Bitcoin ETFs: Issuers Modify S-1 Filings with Lower Sponsor Fees

The suspense surrounding the United States Securities and Exchange Commission (SEC) decision on the spot Bitcoin (BTC) exchange-traded fund (ETF) persists, with multiple applicants submitting their final S-1 form amendments on Jan. 8.

The Start of a Fee War for Spot Bitcoin ETFs: Issuers Modify S-1 Filings with Lower Sponsor Fees

Valkyrie took the lead by filing its ultimate S-1 amendment, followed by WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, and 21Shares. Notably, many applicants have included adjustments to lower fees, intensifying the competition among the various ETF offerings.

Bitwise boasts the lowest Sponsor Fee among the currently filed ETFs, featuring no fee for the initial six months and the first $1 billion in assets, followed by a 0.24% fee. ARK Invest and 21Shares also stand out by not charging a fee for the first six months or until $1 billion in assets, after which they implement a 0.25% fee—a move that Bloomberg market analyst Eric Balchunas described as “breathtaking,” noting that the ongoing fee wars have reached a new level.

VanEck has listed a 0.25% fee, Franklin a 0.29% fee, and Fidelity a 0.39% fee. Global asset manager BlackRock has set the fee for the iShare ETF at 0.20% for the initial 12 months or until the first $5 billion, subsequently increasing it to 0.30% as the ongoing fee.

In terms of higher fees, Wisdomtree stands at 0.5%, while Galaxy Invesco offers the initial six months with no fee, followed by a 0.59% fee. Valkyrie has set a fee of 0.80%, and Hashdex comes in with a sponsor fee of 0.90%.

Grayscale, on the other hand, has reduced its fee from 2% to the newly listed fee of 1.5%, currently ranking as the most expensive among the group.