BlackRock is slashing down its proposed spot Bitcoin (BTC) exchange traded fund (ETF) fee in yet another revision to its filing under review by the US Securities and Exchange Commission (SEC). This comes just hours before the anticipated ruling of the regulator on at least one pending application for these new financial instruments.
BlackRock Spot Bitcoin ETF Status
BlackRock is considered to be one of the primary catalysts of the bull run we are experiencing. Its filing for a spot Bitcoin ETF last year turned things around in the ailing industry marred by crashing crypto prices and scandals caused by the collapse of powerhouse crypto entities like FTX, Terra Luna, and others. Given its huge role as a market mover, all eyes have been closely watching its every move, especially now that we are approaching a critical juncture in the future of finance.
Yesterday, we reported about the world’s largest asset management firm submitting a revision for its S-1 form. However, we were still scraping for more details about the amendment at that time. Now, it turns out that the changes centered on the proposed fees of the company.
Based on the previous disclosure of the SEC, BlackRock will be charging 0.20% for the first year or the first $5 billion of its assets under management (AUM) in relation to the spot Bitcoin ETFs, whichever comes first. Beyond that will be a 0.30% fee going forward. The updated filing of the company further decreases the proposed fees of the firm to 0.25% after the waiver to keep up with the competition.
Among the applicants, Bitwise appears to have the best offer for customers by waiving its fees in the initial six months of operation of its spot Bitcoin ETF or up to the first $1 billion AUM and 0.24% thereafter.
BlackRock in Bitcoin Mining
Besides its entry into the spot Bitcoin ETF niche, BlackRock has also been aggressively expanding its reach in the BTC mining sector. The Wall Street giant possesses major stakes in two of the biggest players in this industry, namely Marathon Digital and Riot Platforms. Additionally, it has investments in Cipher Mining, TeraWulf, Stronghold Digital, Greenidge Generation Holdings, and Cleanspark.
BlackRock’s ESG Controversy
Despite being the star of the show in the spot Bitcoin ETF saga, BlackRock is currently embroiled in a series of controversies regarding its labor layoffs and for cutting down its Environmental Social Governance (ESG) efforts. In line with the latter, BlackRock CEO Larry Fink said in a recent interview that he will no longer be mentioning the acronym “ESG” because of the issues they tend to stir up.