From Fortune:

The Securities and Exchange Commission is expected to approve the first spot Bitcoin ETFs this week. In response, issuers are competing by offering low fees to investors. Major players like BlackRock and Fidelity are vying for a share of the potentially billion-dollar market.

If the SEC approves spot Bitcoin ETFs, it will open a race for market share. Fees, alongside name recognition and trust, are a key factor for attracting early investors. Fidelity set its fee at 0.39%, while Galaxy/Invesco ETF put its fee at 0.59%, also waiving fees for the first six months and assets held.

Bitwise, with a fee of 0.24%, and VanEck, with a fee of 0.25% and a 5% donation of profits to Bitcoin Core developers, are among the low fee offerings. BlackRock and others aim to attract early investors by waiving fees for a set period and amount. BlackRock, for example, will waive fees for the first 12 months or $5 billion invested.

Current fee rates for Bitcoin ETFs are much lower than many anticipated. Competition is fierce, with Grayscale offering a less competitive 1.5% fee, still lower than their 2% fee for their Bitcoin trust. Meanwhile, Grayscale has the advantage of “uplisting” its existing Bitcoin trust, potentially being the first out of the gate with a Bitcoin ETF.

The SEC’s decision on the next ETF application in line, ARK 21Shares, will be on Jan. 10. Traditional investors are hoping that Bitcoin ETFs will encourage wealth managers and everyday traders to enter the market. Issuers have until Monday to submit revisions to their applications, with the SEC set to vote on the filings midweek.

Bitcoin ETFs would allow investors to hold cryptocurrency through their brokerage accounts for a small fee, rather than buying Bitcoin on exchanges. However, the process would not be immune from the risks of the crypto industry. Coinbase, for example, will be the Bitcoin custodian for the majority of issuers.

While there is optimism for the approval of spot Bitcoin ETFs, there is still a possibility that the applications will be delayed or rejected by the SEC. Balchunas estimates a 5% chance of rejection, which could lead to additional court cases.



Read more: Bitcoin ETF battles escalate as issuers including BlackRock and Cathie Wood’s ARK set fees and offer waivers