Multiple Bitcoin ETFs have lower fees than Coinbase, spokesperson: no plans to reduce trading fees

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Bitcoin Spot ETF Opens Strong, Multiple ETFs Offer Lower Fees than Coinbase

The Bitcoin Spot ETF had a strong performance on its first day of listing. Not only did it attract an astonishing $500 million in trading volume within the first 20 minutes of trading, but the final trading volume exceeded $4.6 billion, with half of the volume contributed by the highest fee GBTC at 1.5%.

Bitcoin Spot ETF Sees $5 Billion Trading Volume Surge in First 20 Minutes of Trading

According to data compiled by Bloomberg ETF analyst James Seyffart, various issuers are engaged in a price war, with up to 6 issuers offering initial fee waivers. However, a Coinbase spokesperson stated that they will not reduce trading fees in response.

Overview of 11 Bitcoin Spot ETF Management Fees, Expected to Raise $40 Billion on the First Day

Coinbase: No Plans to Lower Trading Fees

A Coinbase spokesperson told DLNews that the Bitcoin Spot ETF opens doors for asset managers, retirement funds, and tax-advantaged accounts to access cryptocurrencies that were previously inaccessible. However, Coinbase still views Bitcoin ETFs as a supplementary or alternative product.

They stated:

Coinbase currently has no plans to lower trading fees due to the ETF launch. Spot ETFs will act as a catalyst in the crypto space, increasing credibility, liquidity, and attracting new participants and institutions, but in the future, these users will want to "more directly participate in the crypto economy through Coinbase."

The spokesperson emphasized that Coinbase will provide a range of services to ETF issuers. Specifically, out of the 11 Bitcoin ETFs, Coinbase has been designated as the custodian by 8 issuers. Coinbase will also provide key services such as matching, settlement, and financing.

According to the fee page, Coinbase's trading fees range from 0.05% to 0.60% based on trading volume tiers.