BlackRock and Ark Investment Management’s recent move to slash fees for their planned spot bitcoin exchange-traded funds (ETFs). BlackRock’s iShares Bitcoin Trust has lowered its fee from 0.30% to 0.25%, while Ark 21Shares Bitcoin ETF reduced its fee to 0.21% from the initial 0.25%.

BlackRock and Ark submitted the revised filings to the regulator shortly after a false message briefly appeared on the SEC’s social media account, falsely asserting the approval of the long-awaited ETF.

Despite this, most issuers remain optimistic about the SEC’s potential approval by Wednesday afternoon, anticipating trading commencement as early as Thursday morning, Reuters reported.

BlackRock and Ark Compete for Market Share

This maneuver sparks an unprecedented fee battle, occurring even before receiving approval from the U.S. Securities and Exchange Commission (SEC) for these investment products.

LOWER: BlackRock has just cut the fee on its spot Bitcoin ETF to 0.25% (and 0.12% for the first $5b). They really going for the jugular here, looking to crush the others bf they even born, just brutal. ARK has also cut to 0.21%. Bitwise curr low at 0.20%. Terrordome life. pic.twitter.com/PtSrvAinbW

— Eric Balchunas (@EricBalchunas) January 10, 2024

Both BlackRock and Ark are demonstrating a sense of urgency to capture a significant portion of the expected capital inflow. Analysts and academics emphasize the critical role fees will play in attracting new assets, given that these ETFs are designed to offer essentially identical returns.

Expect ongoing updates as this story evolves.

This article was written by Jared Kirui at www.financemagnates.com.CryptoCurrencyRead More

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