BlackRock, the world’s largest asset manager, is going to charge its investors a small fee of 0.12% for its spot Bitcoin ETF. This small fee comes with a catch. The nominal fee is only for the first $5 billion in assets or one year after which they would be charged 0.25%.
Blackrock updated its S1 filing with the SEC on Jan 10 in which it listed its fees for the spot Bitcoin ETF.
“For a twelve-month period commencing on the day the Shares are initially listed on NASDAQ, the Sponsor will waive a portion of the Sponsor’s Fee so that the Sponsor’s Fee after the fee waiver will be equal to 0.12% of the net asset value of the Trust for the first $5.0 billion of the Trust’s assets.”
As the competition heats up companies are lowering their fees to lure investors. Ark Invest lowered its fee to 0.21% to keep up with the competition. In the SEC filing report, BlockRock had filed for a 0.3% fee and then decided to lower the fee to 0.25%.
Bitwise is charging a fee of 0.20% making it the lowest among the competition. Earlier today, Blackrock’s spot ETF was declared effective by the U.S. Securities and Exchange Commission (SEC).
The asset manager declared the iShares Bitcoin Trust (IBIT) effecting and investors can start trading.
Also read: World’s largest asset manager: SEC to approve spot Bitcoin ETF by Wednesday