Fidelity has considered offering spot Bitcoin ETF trading with the lowest possible fee of 0.39% per trade.
While there are over a dozen institutions that are ready to offer spot Bitcoin ETFs, the trading fee associated with the ETF will play a crucial role in its popularity.
Bloomberg analyst James Seyffart says that spot Bitcoin ETF “fees will be critical” as the firms will be competing with each other to obtain market dominance.
“I don’t think the issuers have to offer the absolute lowest fee, but I do think they can’t be charging too much more and still remain competitive,” said Seyffart.
Out of the 13, only 6 applicants have shared the management fees they will charge while enabling trading of Bitcoin ETFs.
Invesco and Galaxy introduced the fee standard with them saying that they will not charge any fees for the first six months and till achieving $5 billion in assets. After this timeframe, they will be charging a nominal fee of 0.59% on trades.
Other issuers also shared their fee structure with Fidelity setting the lowest 0.39% while ARK Invest, 21Shares and Valkyrie planning to charge the highest up to 0.80%.
Fidelity has an advantage in management cost as the firm is using an in-house custodian and giving direct access to the Bitcoin liquidity.
The buzz around the Bitcoin ETF has taken off since last week as the SEC will be probably sharing its final decision regarding the ETF anytime now.
