![]() on notice by slashing the fee on its S&P 500 fund to just 2 basis points, or 0.02%. Meanwhile, just this month, State Street Global Advisors put BlackRock and Vanguard Group Inc. In the nascent market for ETFs that track collateralized loan obligations, for example, BlackRock undercut rival issuers by debuting the cheapest such offering in January, only to be one-upped by PGIM in July. On Thursday, a Grayscale spokesperson said the company’s legal team “is focused on actively and expeditiously pursuing next steps to convert GBTC to an ETF, and we will share next steps and additional information as soon as possible.”įee wars are a familiar phenomenon in the increasingly crowded ETF arena - both in new categories as well as established asset classes. Grayscale’s Chief Executive Officer Michael Sonnenshein reiterated on Bloomberg Television Wednesday that the firm is “committed to lowering fees when GBTC converts to an ETF,” but declined to specify by how much. “Spot-Bitcoin ETFs will all generally look the same – they simply hold Bitcoin - which makes fees a key differentiator.” ![]() ![]() “Grayscale is up against issuers such as BlackRock and Invesco who are highly accustomed to bludgeoning each other on fees,” said Nate Geraci, president of The ETF Store, an advisory firm. Fees aren’t yet listed for their proposed products, though history suggests it’ll be a fraction of what GBTC charges. Asset-management titans including BlackRock Inc., Invesco Ltd and Fidelity Investment - known for their low-cost lineups - all have similar applications filed with the SEC, which the regulator is expected to respond to in the coming days. That disconnect means that Grayscale’s Bitcoin trust, known as GBTC, faces a dilemma over fees should the SEC finally give its blessing to spot-Bitcoin ETFs. That compares to an average of 0.54% across US-listed ETFs, and 1.48% for crypto exchange-traded products globally, Bloomberg Intelligence data show. While the action potentially paves the way for the firm to attract a fresh wave of investors, there’s just one thing: The product carries a 2% fee in its current form. (Bloomberg) - Fresh off a pivotal win in court this week, Grayscale Investments LLC may soon find itself in another fight: the $7.5 trillion US exchange-traded industry’s never-ending contest over fees.Ī ruling Tuesday overturned the Securities and Exchange Commission’s decision to block Grayscale’s bid to convert its $17 billion Bitcoin trust into a physically backed ETF.
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