ARK Invest Discloses 0.80% Fee for Spot Bitcoin ETF
Cathie Wood’s firm is applying to issue the fund along with European partner 21Shares.
Famed growth investor Cathie Wood’s ARK Invest, along with European-based cryptocurrency investment firm 21Shares, updated its most recent spot bitcoin ETF filing, unveiling an 0.80% fee.
On Monday, the two firms filed a third amendment to their S-1 ETF filing, in which they laid out additional risk disclosures and added new information about the fund’s fee. The ETF would trade on the BZX Exchange by the Chicago Board Options Exchange under the ticker ARKB.
A slew of firms have recently added updates to their spot bitcoin ETF filings, including WisdomTree Investments on Nov. 16, indicating that conversations with the Securities and Exchange Commission are moving along toward a potential approval.. ETF issuers are adding risk disclosures and tweaks to their proposals based on conversations with the agency, according to multiple people familiar with the matter.
The SEC must decide on ARK's application by Jan. 11, the earliest deadline for a spot bitcoin ETF. The agency delayed its decision in September.
Bitcoin ETF Fees
ARK is the first big player to unveil a fee. The 80-basis point charge is the first strong indication of how asset managers will price the novel products in an ETF industry known for competing on fees.
The largest bitcoin ETF product, the ProShares Bitcoin Strategy ETF (BITO), charges a 0.95% fee, while the Grayscale Bitcoin Trust (GBTC), which the firm is vying to convert into an ETF, charges 2%. Grayscale has said it is committed to lowering the fee if the trust is converted into an exchange-traded fund.
Fees could be a key part in the battle for market share that will likely ensue if multiple spot bitcoin ETF applications are approved at once.
“It’s marketing game from there, although some people would call it a war,” Wood said in an interview with etf.com last week.
Yet not all experts agree that fees will be what distinguishes different ETFs. Some people familiar with the matter have noted that issues like liquidity and investors' familiarity with the issuer could be more important than cost.
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