ARK Bitcoin spot ETF may be subject to the "intrinsic complexity" of cryptocurrency products and will charge an annual management fee of 0.8%
ChainCatcher news, according to Bloomberg, ARK Investment Management and 21Shares have become the first major applicants in the U.S. to announce the management fee for a Bitcoin spot ETF. According to updated documents from Monday, the Ark 21Shares Bitcoin ETF (ARBK) will charge a management fee of 0.8%. While this is higher than the average fee rate of 0.54% for U.S.-listed ETFs, it is lower than the 0.95% charged by the largest Bitcoin futures ETF—ProShares Bitcoin Strategy ETF—and far below the 2% charged by Grayscale's GBTC.Bloomberg cites industry experts stating that Ark and 21Shares have kicked off this "fee competition," with competitors including asset management giants known for their low-cost product lines, such as BlackRock Inc., Invesco Ltd., and Fidelity Investments.Bloomberg ETF analyst James Seyffart stated, "The fact that Ark and 21Shares updated the fees in their filing from 70 basis points to 80 basis points may indicate that the costs of running these products are higher than some sponsors and issuers might have imagined." 21Shares co-founder and president Ophelia Snyder noted that the "intrinsic complexity" of U.S.-listed spot products has led to the 0.8% fee.
