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Multiple applicants seeking to launch Bitcoin exchange-traded funds lower offer fees for ETFs as battle for control of the long-awaited asset class intensifies ahead of approval of the first crypto fund by U.S. regulators Ta. Wednesday.
important facts
BlackRock and Ark Invest on Wednesday lowered fees for their proposed Spot Bitcoin ETF from 0.2% to 0.12% and from 0.25% to 0.21%, respectively, but both lower the ETF’s average fee of about 0.4%. It was significantly lower.
The reduction comes a day after several other Spot Bitcoin ETF applicants lowered their fees to below 50 basis points, with BlackRock, the world’s largest asset manager, having the lowest fees.
The fee rollback also comes hours before the Securities and Exchange Commission’s blanket approval of Bitcoin ETFs is expected to coincide with the deadline to decide on Ark’s application.
A notable holdout from the price war is Grayscale, which already runs the largest Bitcoin fund available, with the digital asset management firm imposing a 1.5% fee on the proposed conversion of Bitcoin trusts into ETFs. It is said that it is planned.
Main background
The Spot Bitcoin ETF offers investors the easiest and perhaps most secure route to owning the largest crypto token ever. Such funds allow investors to put money into Bitcoin without directly owning the digital asset, and function similarly to ETFs that track indexes such as the S&P 500, allowing investors to invest in Bitcoin without directly owning the digital asset. Gain exposure to index components without directly owning all the stocks tracked by Index. Bitcoin prices soared as SEC approval of Bitcoin ETF became more likely. Bitcoin has rallied nearly 70% since mid-October, when a federal court ruling suggested that regulators’ advance rejection of proposed Bitcoin ETFs was illegal. The institutional vote of confidence in Bitcoin comes after a difficult two years for the crypto industry, highlighted by the state-side collapse of Binance and FTX, previously the two largest crypto exchanges.
big number
$70 billion to $80 billion. Bernstein analysts expect this amount of capital to be held in Bitcoin ETFs by the end of next year.
tangent
The SEC appears to have announced on Tuesday that it has approved a Bitcoin ETF in X Accounts, causing Bitcoin prices to soar. However, authorities, who have long been skeptical of cryptocurrencies, said the post was fake and the result of “unauthorized access.”
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