Blackrock to undercut competition with 0.2% fee for first $5B in assets into spot Bitcoin ETF

Major institutions in the race for the first spot, Bitcoin ETF, have updated their S1 filings with the SEC within minutes of each other today, Jan. 8.

Blackrock, Ark, WisdomTree, and Invesco Galaxy all submitted updated documents around 11 am GMT as the final stages of the potential approval of the first spot Bitcoin ETF in the United States is underway.

The Blackrock ETF plans a low 0.3% fee, according to the latest filing, making it the lowest of the known fees at this time. Further, for the first twelve months and $5 billion in funds, it will offer a 0.2% fee as a promotional tool.

“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 0.20% of the net asset value of the Trust for the first $5.0 billion of the Trust’s assets.”

Blackrock has also revealed that “as of January 5, 2024, the date the Seed Capital Investor purchased the Seed Creation Baskets, the net asset value of the Trust was $9,980,032.71, and the NAV was $24.95.”

The Invesco Galaxy ETF will trade under the ticker BTCO, and the filing states that it has seeded around $4.8 million in Bitcoin to date,

“Accordingly, as of the market close on January 4, 2024, the Trust had total assets of $4,857,935.50, solely represented by bitcoin held in custody by the Bitcoin Custodian, and had 110,000 Shares outstanding, entirely held by the Sponsor. The Sponsor acted as a statutory underwriter in connection with these purchases.”

This is breaking news, and the story will be updated as CryptoSlate reviews the documents.

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