Fidelity lowers proposed spot bitcoin ETF fee to 0.25% amid fee race

Fidelity has decided to lower the proposed fee for its spot bitcoin exchange-traded fund (ETF) to 0.25%, according to a revised filing submitted on Tuesday. This move comes after initially setting the fee at 0.39% on December 29. Furthermore, Fidelity plans to waive the fee for market participants until July 31. The competition among U.S. contenders to launch the first spot bitcoin ETF has led to a race to the bottom in terms of fees, with asset managers such as Bitwise, WisdomTree, Invesco, and Valkyrie also lowering their fees. The Securities and Exchange Commission (SEC) is expected to announce its decision on these ETF applications, and it is anticipated that trading could commence as early as Thursday. However, today the SEC’s Twitter account was hacked, resulting in a fake post that claimed the spot bitcoin ETFs had been approved. This incident caused a temporary drop in the price of bitcoin. The SEC has stated that it will collaborate with law enforcement to investigate the unauthorized access. Despite this setback, Bloomberg Intelligence research analyst James Seyffart believes that the ETF verdict will still follow the original schedule. Overall, the race to launch a spot bitcoin ETF continues amidst a fee competition and evolving regulatory developments.