Ark & 21Shares disclose Bitcoin spot ETF fees! Higher than traditional

Kapil334

Bloomberg ETF analysts consider the issuer's modified documents as a positive development, seeing it as a result of active communication with the SEC. Ark and 21Shares are the first issuers to disclose the fees for a Bitcoin spot ETF.

The fees for the Ark Bitcoin spot ETF are higher than those of traditional ETFs in the United States, according to SEC documents. A comparison of fees among various ETFs is as follows:
- Ark & 21Shares: 0.8%
- Most U.S. ETFs: 0.54%
- Grayscale Bitcoin Trust (GBTC): 2%
- ProShares Bitcoin Futures ETF (BITO): 0.95%

Ark and 21Shares are the first issuers to publicly disclose fees for a Bitcoin spot ETF. Bloomberg also quoted industry experts pointing out that with so many entities applying for Bitcoin spot ETFs, intense competition in fees is expected.

Ophelia Snyder, co-founder of 21Shares, stated in a Bloomberg interview that the inherent complexity of spot products listed in the United States resulted in the 0.8% fee. She said, 'While traditional ETFs cover a range of services such as custody, accounting, management, and more, the situation is not the same for crypto-related products. Almost every part is provided by different service providers, which does increase operational costs, but we believe this is a reasonable price.'

Bloomberg analyst Eric Balchunas made several points regarding Ark's updated documents:
- Product costs are higher than the issuer's expectations.
- Ark & 21Shares still maintain physical redemption.
- The more documents are updated, the more it indicates institutions continuously revising based on SEC requirements.

Another ETF analyst, James Seyffart, also noted that the fees are higher than he envisioned but believes that the modification of documents indicates active dialogue between the issuer and the SEC.

Indra55

This fee is something worth looking into.

Janak9955

This fee seems to be quite high.