Franklin Templeton has taken a significant step ahead in the competition for Spot Bitcoin ETF fees by reducing its fee by 10 basis points. This move positions Franklin Templeton as the provider with the lowest fee in this category.
In a major development, Franklin Templeton, the issuer of the Spot Bitcoin ETF, has made a significant move by lowering its sponsor fee. This decision marks a groundbreaking moment as Franklin Templeton now holds the record for the lowest fee among its competitors. As per the filing dated January 12, the firm has opted to reduce its annual Bitcoin ETF fee from 0.29% to 0.19%.
Franklin Templeton’s Bold Move in Bitcoin ETF Fee Competition
In a notable filing, Franklin Templeton proposed a 10 basis points reduction in the sponsor’s fee, marking a significant step in the Spot Bitcoin ETF fee competition. The filing also introduced a fee waiver for the next six months, from January 12 through August 2, where ‘zero’ charges would apply to the ETF for the first $10 billion of the fund’s assets. This strategic fee cut positions Franklin Templeton as a formidable competitor against major players like Grayscale, BlackRock, and ARK 21 Shares.
Previously, Bitwise held the record for the lowest fee at 0.20%, applicable after the initial six-month waiver. Other key players like ARK 21Shares, VanEck, and Fidelity also offer competitive fees of 0.25%. In contrast, Grayscale has the highest sponsor fee at 1.5%, reduced from the earlier proposed 2%.
BlackRock’s iShares charges a 0.20% fee for the first 12 months or until it reaches $5 billion in assets, with a post-waiver fee of 0.30%. Wisdomtree plans to charge 0.30% as a post-waiver fee. Additionally, Invesco and Valkyrie have entered the Bitcoin ETF fee competition with annual fees of 0.39% and 0.49%, respectively.
Franklin Templeton’s fee reduction and waiver period position it as a strong contender in this competitive landscape.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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