BITCOIN

21Shares and ARK amend Bitcoin ETF filing, with fees of 0.8% higher than traditional US ETFs

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21Shares and ARK amend Bitcoin ETF filing, with fees of 0.8% higher than traditional US ETFs

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

ARK & 21Shares Bitcoin Spot ETF Fees Higher Than Traditional ETFs in the U.S.

According to SEC filings, the fees for various ETFs are 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 & 21Shares is the first issuer of a publicly traded Bitcoin spot ETF with fees, and Bloomberg also cited industry experts pointing out that with so many entities applying for Bitcoin spot ETFs, there is expected to be fierce competition in fees.

21Shares Co-Founder: Complexity of Spot Products Leads to Fee Increase

Ophelia Snyder, in an interview with Bloomberg, pointed out that the inherent complexity of spot products listed in the U.S. led to the 0.8% fee. She stated:

While traditional ETFs cover a range of services such as custody, accounting, and management, the situation with crypto-related products is different, with almost every part being provided by different service providers, which does increase operational costs, but we believe this is a reasonable price.

Bloomberg Analyst: Updates Signal Communication

Analyst Eric Balchunas made several points regarding the Ark filings in a tweet:

  • The product costs are higher than what the issuer expected.

  • Ark & 21Shares still maintain physical redemption.

  • More updates in the filings indicate continual adjustments by institutions in response to SEC requirements.

Another ETF analyst, James Seyffart, also noted that the fees are higher than he anticipated, but he also believes that the filing modifications indicate active dialogue between the issuer and the SEC.