In a fierce competition among spot bitcoin ETF applicants, Bitwise takes the lead by dropping fees to 0.20%, the lowest in the market.
Bitwise's Bold Move: 0.20% Fee Unveiled
Bitwise, in an amended S-1 filing, announces a significant reduction in spot bitcoin ETF fees to 0.20%, setting a new standard in the ongoing fee war.
Race to the Bottom: Fee Cuts Across the Board
Competing ETF issuers follow suit, with Valkyrie lowering fees from 0.80% to 0.49%, Invesco Galaxy from 0.59% to 0.39%, and WisdomTree from 0.50% to 0.30%.
Discount Strategies Unveiled by Key Players
Ark/21Shares maintains a zero-fee strategy for the first six months or until assets reach $1 billion, while Invesco/Galaxy offers zero fees until the first $5 billion in assets. BlackRock provides a substantial discount, dropping fees to 0.2% for the initial 12 months.
Market Anticipation: Billions Expected to Flow In
With the potential approval of spot bitcoin ETFs, the market anticipates a significant influx of funds into the dominant cryptocurrency. Bitwise projects the market to reach approximately $72 billion within five years.
High Expectations for Inflows: Projections by Key Players
Valkyrie foresees up to $400 million flowing into its ETF within the first week, expecting the entire market to reach $5 billion in the initial weeks. VanEck estimates $1 billion in the first few days and $2.4 billion within a quarter. Galaxy anticipates a substantial $14 billion within the first year.
Market Potential: Bitwise Predicts $72 Billion in Five Years
Bitwise expresses optimism, projecting the spot bitcoin ETF market to grow to around $72 billion within the next five years.
While the fee war among spot bitcoin ETF applicants may seem beneficial for investors, it raises concerns about the sustainability of such low fees and potential long-term impacts on market dynamics.
Cheng Yuan
