Senior ETF Analyst at Bloomberg, John O’Sullivan, has provided insights into the fee competition within the ETF market, specifically highlighting the ongoing battle between BlackRock and ARK Invest. O’Sullivan expressed surprise at the recently disclosed fee for BlackRock’s Bitcoin ETF, which is set at 0.30% according to the recently filed form. He commented that this fee was much lower than his initial prediction, indicating that the competitive landscape has significantly intensified for other market participants.
In response to BlackRock’s announcement, ARK Invest swiftly adjusted their fee to 0.25%, further intensifying the fee competition. Additionally, another player, whose name was not mentioned, entered the fray with a competitive 0.25% fee as well. As a result, Fidelity’s offering, which previously stood as the cheapest in the group at 0.39%, has lost its standing.
The final documents for the ETFs have been submitted, and now it is up to the Securities and Exchange Commission (SEC) to decide on the approval of the forms. If approved, trading could potentially commence the following day. The industry is eagerly awaiting the SEC’s decision, with the deadline set for Wednesday, January 10th.
It is important to note that this article was originally published on U.Today.