Grayscale has set the highest management fee for a spot BTC ETF

What’s new? Investment companies awaiting approval to launch spot bitcoin exchange-traded funds (ETFs) from the US securities regulator SEC have supplemented applications with data on the initial funding of their products and management fees. The final amendments were made by BlackRock, Grayscale, VanEck, Bitwise, Fidelity, Valkyrie, Wisdom Tree, and others. According to the latest data from Axios, trading in shares of spot BTC ETFs may begin in the United States as early as January 11.

Material by Axios

What else is known? The world’s largest investment company BlackRock will allocate $10 million for the launch of its fund. If approved, the shares will be traded on Nasdaq under the ticker IBIT, the fund management fee will be 0,2%. After six months, or after raising $5 billion, the fee will rise to 0,3%.

Grayscale, unlike other companies, is not launching a new fund: it intends to convert its existing GBTC bitcoin trust into a spot ETF. As of the end of November, GBTC holds 620 610 bitcoins, making it the largest exchange-traded product in its segment, according to The Block. In addition, the discount on GBTC shares fell to 5,6% on January 9, the lowest level since April 2021. As for the fee, Grayscale has a much higher fee compared to its competitors at 1,5%. If the conversion is successful, the ETF will retain the same ticker and will be available on the NYSE.

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VanEck will allocate $72,5 million to create the fund. The product under the ticker HODL will be added to the CBOE listing, the management fee will be 0,25%.

The initial funding of the Bitwise fund under the BITB ticker will be $500 000. The shares will be traded on the NYSE with zero fee, which after six months will be increased to 0,24% if the fund raises more than $1 billion.

Fidelity’s fund under the ticker FBTC will be available on the CBOE with a standing fee of 0,39%.

Valkyrie will receive $525 000 from the parent company to launch the fund through the purchase of shares. The product under the ticker BRRR will be traded on Nasdaq, the fee will be 0,8%, with no additional terms.

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Wisdom Tree has allocated $2,5 million for seed funding. The BTCW fund will be launched on CBOE with a standing fee of 0,5%.

The joint product from ARK Invest and 21Shares under the ticker ARKB will initially raise $437 000. It will be traded on the CBOE with zero fees for the first six months, or until it raises $1 billion.

Invesco and Galaxy Investment Company fund will be launched with $5,1 million in funds. BTCO will be listed on the CBOE with a zero fee, which will remain in place for the first six months provided investor funds do not exceed $5 billion. Thereafter, it will increase to 0,59%.

Earlier, ETF Store President Nate Geraci noted that lower fees for trading exchange-traded fund shares compared to crypto exchanges’ transaction fees would turn into a “bloodbath” for the latter.