ARK's bitcoin ETF to undercut rivals with 0.80% fee

ARK Investment Management and 21Shares plan to charge just 0.80% on their proposed ARK 21Shares Bitcoin exchange-traded fund (ETF). This would undercut the 2% fee of Grayscale’s popular Bitcoin Trust and the 0.95% charged by futures-based Bitcoin ETFs like ProShares’ BITO.

The lowered fee came as part of ARK’s latest amended prospectus filing — its third attempt to convince the SEC to approve a spot bitcoin ETF. The agency has rejected all applications so far but must decide on ARK’s proposal by January 11, 2024, after a court order.

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While not all filers have updated their proposals, ARK’s repeated amendments show they are actively engaging with SEC feedback according to experts like Bloomberg’s Eric Balchunas. He believes this back-and-forth is a positive sign the regulator may finally be opening up to approving a spot bitcoin ETF. Balchunas also noted the planned fund would use an in-kind creation/redemption model to limit tax and spread issues.

ARK is vying to be one of up to ten spot bitcoin ETFs under review by the SEC. If approved in early 2024, massive competition between issuers is expected as they fight for market share in this long-awaited product.