BlackRock, Ark Slash Bitcoin ETF Fees Again Ahead of SEC Deadline

Competition among prospective Bitcoin exchange-traded fund issuers intensified, as companies further slashed fees in a bid to make products more attractive to investors ahead of a regulator’s decision on their future.

BlackRock Inc. lowered the fee on its proposed iShares ETF by five basis points to 0.25%, according to an updated filing with the US Securities and Exchange Commission on Wednesday. It also lowered its introductory offer on the fund, so that investors will pay a 0.12% fee in the first 12 months or for the first $5 billion in assets, rather than 0.20%.

“BlackRock is really going for the jugular here, this is just a brutal cut,” said Eric Balchunas, senior ETF analyst for Bloomberg Intelligence, in an interview. “They were kind of the favorite anyway because of their brand name and distribution, so for them to cut this low, this soon, is a blow to the rest of the competition.”

Ark Investment Management LLC’s ETF with 21Shares will now be listed with a fee of 0.21%, a separate filing showed, four basis points lower than the fee it had proposed on Tuesday.

The changes come after several Bitcoin ETF hopefuls reduced their fees on Tuesday, including Invesco, Valkyrie and WisdomTree. Bitwise remains the cheapest option that could be offered to investors, listed at 0.20% after an introductory period.