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BlackRock vs. ARK Invest: Bitcoin ETF Battle Details Exposed by Top Expert

Published 01/09/2024, 09:58 AM
Updated 01/09/2024, 10:00 AM
© Reuters BlackRock vs. ARK Invest: Bitcoin ETF Battle Details Exposed by Top Expert
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U.Today - In recent developments, key financial entities, including Valkyrie, WisdomTree, BlackRock (NYSE:BLK), Invesco and VanEck, have submitted updated for a . The filings have unveiled previously undisclosed commissions, sparking a competitive atmosphere within the cryptocurrency exchange-traded funds (ETFs) sector.

Senior ETF Analyst at Bloomberg ⁠⁠⁠⁠⁠⁠⁠ shared insights into the fee competition, particularly highlighting the ongoing battle between BlackRock and ARK Invest. He expressed surprise at the disclosed fee for BlackRock's Bitcoin ETF, stating that it would be 0.30%, as per the recently filed form.

The expert remarked that the fee was much more economical than his initial prediction, suggesting that the competitive landscape had significantly intensified for other market participants.

In response to BlackRock's announcement, ARK Invest swiftly adjusted their fee to 0.25%, adding to the intensity of the fee competition. also entered the fray with a competitive 0.25% fee, causing Fidelity's 0.39% to lose its standing as the cheapest in the group.

Does it matter?

Balchunas also touched upon the temporary fee waivers in ETFs, noting that historically, these have not significantly influenced investor decisions. However, he speculated that given the similar nature of these ETFs, fees might become a more critical consideration for investors.

The final documents have been submitted, and now, the SEC will decide on the approval of the forms, with the potential for trading to commence the following day. The industry is eagerly awaiting the SEC's decision, with the deadline set for Wednesday, Jan. 10.

This article was originally published on U.Today

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